Vacation Rental Insurance 101

Vacation rental insurance can be complicated. You must know the owner’s rule of three.

The roofline of a house


The biggest insurance exposure you have as a vacation rental property owner is liability. What if a guest were to injure themselves while staying at your property? What if you were found liable? Maybe the bathtub was not thoroughly cleaned, and a guest slipped on soap scum? Or worse, the house caught fire and resulted in a guest’s death. The Proper Insurance policy provides $1,000,000/$2,000,000 in commercial general liability (business liability). You are covered.

Building and Contents

The second biggest insurance exposure you have as a vacation rental property owner is the actual property itself (building and contents). What if a guest were to burn your property down accidentally? Or steal your contents? Or the property was occupied by a guest when a toilet leaked and destroyed your flooring? The Proper Insurance policy insures your building and contents as a business (commercial form) with replacement cost (new for old) on a special form (all risk). The reason Proper uses a commercial form is because there are no standard occupancy restrictions as in a homeowner’s policy. This means at the time of a covered loss, the property can be occupied by you, the owner, friends or family, paying guests, or even be vacant. It’s the only way to properly insure a short-term rental, especially if it’s a vacation home or nightly rental. You are covered.

Business Income

You have worked hard to turn your property into an income-generating vacation rental business. What if a tree fell on your roof, and you could no longer rent your property for the summer? Or worse, you had a total loss on the property as a result of a fire? You need to protect your income. The Proper Insurance policy insures your income as “actual loss sustained” with no time limit. You are only subject to the limit you choose.

The Proper Insurance offers the most comprehensive policy on the market for short-term rentals covering building(s), contents, commercial liability, and business income. Get A Quote Today.

About the Author

Proper Insurance

Proper Insurance is the nation's leading short-term vacation rental insurance provider, with the most comprehensive policy on the market. We protect homes in all 50 states with unmatched coverage for your property, revenue, and business liability, customized to include guest-caused theft/damage, liquor liability, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.


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