Proper’s Exclusive Squatters Insurance Enhancement
Proper Insurance is the only insurance provider in the United States to provide owners and hosts with squatter protection at their rental. Proper’s squatters insurance enhancement offers coverage for legal fees to remove the squatter as well as lost rental revenue during the time the squatter is occupying the property, forcing cancelled bookings at the property.
What is Squatters Insurance?
Even the word “squatter” can cause unease, especially for Airbnb hosts and short-term rental owners. Squatters insurance is a unique coverage in the Proper Insurance policy designed to protect rental property owners from the financial and legal challenges posed by guests that decide to overstay their booking period by continuing to occupy your property without permission.
For Airbnb hosts and short-term rental owners, this type of coverage is crucial as squatter cases continue to rise across the United States. High-profile cases, like Elizabeth Hirschhorn, the Airbnb “tenant from hell,” have brought significant attention to this growing problem.
This coverage enhancement helps mitigate financial losses by providing coverage for actual expenses incurred and loss of business revenue, lightening the financial burden for owners and hosts trying to regain control of their properties.
Why is Squatters Insurance Important?
The explosion of the short-term rental industry has made it clear that traditional Homeowners (HO) and Dwelling or Landlord (DP3) insurance policies are inadequate for various Airbnb and vacation rental exposures.
These standard policies typically don’t cover the specific risks associated with short-term renting, leaving property owners vulnerable to significant financial losses, liability loopholes, and legal complexities.
Proper Insurance’s short-term rental policy offers peace of mind and financial protection for Airbnb hosts and short-term rental owners in various scenarios, including squatting incidents.
When someone occupies your rental property and refuses to leave, it can result in extensive legal and financial repercussions, in addition to a major inconvenience. The challenges presented by squatter scenarios can be overwhelming:
Legal Fees and Eviction Costs
Dealing with a squatter legally requires contacting an eviction attorney and managing court proceedings, costs that can quickly add up. The eviction process can vary widely depending on state laws, potentially lasting anywhere from 3 to 90 days or longer. During this time, your property remains unoccupied, causing a significant loss of rental revenue.
Property Damage
Squatters frequently cause substantial damage to rental properties, from intentionally punching holes in walls to other forms of malicious and purposeful destruction. Repairs and restoration can be costly on top of the legal fees, eviction costs and loss of revenue.
Homeowners and Landlord policies exclude or lack enough coverage for guest-caused damage at short-term rentals, including by a guest-turned squatter. This further intensifies the financial strain for the property owner without the right coverage in place.
Proper Insurance is proudly the only company with a policy that covers squatter scenarios, and then the aftermath of the guest-caused damage left behind at your short-term rental.
Squatters Insurance by Proper Insurance
Reflecting its commitment to providing the best protection for short-term rental owners, Proper Insurance rolled out significant enhancements to its Squatters coverage in 2024. The upgraded protection for squatters’ scenarios now includes:
Up to $20,000 in Lost Business Revenue: This component of squatter’s coverage compensates hosts and property owners up to $20,000 in lost revenue for canceled bookings and lost revenue during the squatter eviction process.
Up to $10,000 for Actual Expenses Incurred: Hosts can now receive up to $10,000 to cover court costs and sheriff’s fees, ensuring they can manage the financial burden of eviction proceedings.
No Deductible: Proper Insurance’s squatters coverage has no deductible, allowing hosts to focus on resolving the situation.
No other insurance carrier comes close to offering the level of protection that Proper Insurance provides, making it the clear choice for short-term rental owners seeking peace of mind and financial security.
Unmatched Coverage Strengthened by Expert Claims Handling
“I just finalized my first claim experience with Proper Insurance and the customer service and length of time to process the claim was outstanding. Today it seems that most customer service experiences are horrible and I was thrilled to learn that it was not the case with Proper Insurance. Our claim agent, Matthew, was outstanding, attentive to detail and follow through in a timely fashion. Glad I chose them as my insurer.”
– Andrea B.
“Proper was the best choice as my insurance provider. Amazing service from Chelsey and Kevin. This was my first insurance claim and it was a pleasure working with them. Emails were responded [to] immediately and communication was great. I will replace some of my existing insurance policies to Proper from now on. I truly wasn’t expecting such amazing service.”
– Itay C.
Real Squatter Claims Solved By Proper Insurance
Proper Insurance’s Squatters Coverage has proven its value to short-term rental owners across the country. The following are just a few examples of real squatter claims experienced by real short-term rental owners:
Airbnb Squatter in California Causes Nearly $10K in Losses During Extended Stay
A guest extended their stay beyond the initial Airbnb lease, turning into a month-to-month arrangement. The guest overstayed their original agreement by four months causing significant complications for the owner who was forced to cancel future bookings and was never paid by the guest during that time. With the help of Proper Insurance, the vacation rental owner received support of nearly $9,500 through a covered claim, facilitating the eviction process and alleviating financial strain of business revenue during the period of the squatter on the property.
New Jersey Airbnb Squatter Causes $12K in Losses in Less than 10-days
A short-term rental owner in New Jersey accepted a five-day Airbnb booking that quickly unraveled when the guest extended their stay, issued multiple bounced checks, and ultimately had to be formally evicted. The incident resulted in canceled bookings, legal expenses, lost rental income, and pet-related damage — totaling more than $12,000. With Proper Insurance, the host received financial support through the covered claims which helped recoup the lost revenue and address the costs of restoring the property.
Steps to Activate Your Squatters Claim with Proper Insurance
Handling a squatter situation can be daunting, but activating your squatters claim with Proper Insurance is straightforward.
Step-by-Step Process:
- Initiate the Process to Remove the Squatter. File for eviction or contact an eviction attorney as soon as the guest-turned-squatter overstays their booking period. Also, document any communication where you asked them to leave after their booking period, and they refused.
- Track Incurred Fees and Timeline. Keep detailed records of all legal fees and other expenses incurred due to the squatter scenario. Document the timeline, including key dates and any canceled bookings related to the squatter scenario.
- Notify Proper Insurance’s Claims Department. Inform Proper Insurance about the squatter scenario as soon as possible. Provide all necessary documentation to support your claim.
- Document Property Damages Once the Squatter is Out. After the squatter has been removed, thoroughly document any damage they caused to the property. Proper Insurance is the only insurance provider that covers damage caused by a guest, including a guest-turned-squatter. The damage caused by a guest can initiate a second claim and therefore you are able to receive business revenue protection during the repair timeframe, up to your policy limits.
By following these steps and maintaining thorough documentation, you can expect a smooth and efficient claim process with Proper Insurance.
Unlike other carriers, our claims department is in-house, meaning there is no middleman handling your hosting horror scenario. At the time of a claim, we are ready to provide you with unmatched service and a more seamless and timely process.
Frequently Asked Questions: Squatters Insurance
Does insurance cover Airbnb squatters?
No. Insurance policies do not cover squatter-related incidents. The Proper Insurance policy has a one-of-a-kind enhancement to help rental owners deal with squatter related claims.
Does insurance cover damage caused by a squatting guest?
Only one insurance carrier covers damage caused by short-term rental guests, which also includes a guest that turned into a squatter. Proper Insurance’s unique short-term rental insurance policy is the only insurance option that provides coverage for guest-caused damage.
What is the first step to take when dealing with an Airbnb squatter?
The first step is to initiate the eviction process by filing for eviction or contacting an eviction attorney. Document any communication where you asked the squatter to leave and they refused.
How does Proper Insurance assist during a squatter scenario?
Proper Insurance provides coverage for up to $10,000 in eviction-related expenses and offers up to $20,000 in lost business revenue during the time of a squatter at your property. Proper Insurance will also provide protection for guest-caused damage that the squatter caused, allowing you to file a second claim and receive business revenue protection during the timeframe of repairs up to your policy limits.
What documentation is needed to submit a squatter claim?
You need to provide documentation of initial written communication asking the guest to leave, evidence of their overstay after the booking period ended, eviction notices, legal fees, and any other related expenses.
How long do squatter eviction processes typically take?
The duration of eviction processes varies by state. Some states resolve cases in as little as three days, while others may take significantly longer (90-days+).
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