FREQUENTLY ASKED QUESTIONS

Short-Term Rental Basics

What is a short-term rental?

A short-term rental is a property rented and used for short periods of less than 30 days at a time. There are various scenarios of short-term renting– renting your primary home, renting an ADU, renting a secondary home, renting an investment property, and even renting a property the host does not own (known as re-renting or rental arbitrage).  

How long of a stay is considered short-term?

Is a short-term rental considered a business?

Insurance for Short-Term Rentals

What does it mean to “verify” my insurance?

The hard truth is that many modern-day insurance agents don’t understand the fine print of the policies they are selling. Short-term rentals are especially tricky to insure as they straddle the line between a personal residence and a commercial operation, introducing massive coverage gaps and risks for the insured. Even if you add a short-term rental endorsement, also known as a rider, there are still key areas where these policies fall short.

Without in-depth knowledge of the policy, and therefore the gaps present within that policy when protecting a short-term rental, you could be sold the wrong policy. It’s ultimately up to you, the insured, to understand the policy you are purchasing for your short-term rental business.

Proper Insurance offers short-term rental insurance verification as part of our services. Please give us a call so you can better understand your current insurance policy and any gaps present so that you can decide if upgrading to a short-term rental policy is best for your business model.

How do I verify my insurance?

What’s the best way to protect a short-term rental?

If I insure my short-term rental as a business, can I also stay there?

If I have Airbnb’s free AirCover Host Damage Protection, why do I need short-term rental insurance? 

Can I be held liable for incidents or accidents off my property line that happen to my guests or because of my guests?  

Standard Policies vs. Short-Term Rental Coverage

Do I keep my Homeowners or Dwelling/Landlord policy in place and get the Proper Insurance policy?

No. The Proper policy fully replaces your current coverage. You can confidently cancel your current Homeowners or Landlord policy and replace it with the Proper Insurance policy. Proper Insurance offers the most comprehensive coverage available for your property, liability, and business revenue and is far superior to a standard Homeowners or Landlord/Dwelling policy. 

Why isn’t my Homeowners insurance enough for short-term renting

Why does my Homeowners policy not cover my short-term rental?  

Why are Home-Sharing Endorsements from domestic U.S. insurers so inexpensive?

Does Dwelling/Landlord insurance work for a short-term rental?

Will my Personal Umbrella policy cover incidents at my short-term rental?

Proper Insurance Specifics

My short-term rental is also my primary residence. Can I still insure my property under the Proper policy?

Yes, if the property is your primary residence, you can still purchase the Proper policy. Proper adds $1,000,000 in personal liability and $50,000 in loss of use to relocate in the event the property is not habitable. Proper Insurance provides comprehensive coverage for several short-term rental scenarios at a primary residence including detached structures, in-law suites, multi-family structures, and more. 

Does Proper Insurance have an age limit for renting?

What is Proper Insurance’s reputation in the short-term rental industry?   

What is the insurance rating of Proper’s Underwriters? 

What can I expect during a coverage comparison with Proper Insurance? 

What is provided in a coverage consultation and risk assessment with Proper Insurance?  

Still have questions? Talk to an Expert

Call Us Now

If you have any further questions about short-term rental insurance, please call us at 888-631-6680 to speak with a Proper Insurance Super Agent about your unique rental scenario.

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