Short-term rental insurance is complicated. Fear not, we’re here to help.

What Is Considered Short-Term Renting?

In the insurance world, a property that is rented for less than 30 days at a time is typically considered short-term. A property in which the renter does not reside/live at the dwelling.

What Gaps in Coverage Do Landlord-Dwelling Policies (DP) Have In Regards to Short-Term Rentals?

There are various gaps in both liability and property coverage. Landlord or dwelling policies carry premise liability which does not extend off the vacation rental premises. This means no coverage for amenities off-premises such as bicycles or injuries such as dog bites. Plus, there are limitations on damage to the property caused by a guest intentionally or maliciously.

Why Does My Homeowner’s Policy Not Cover My Short-Term Rental?

All homeowner’s policies carry a “business activity exclusion”. In other words, any claim involving a “business activity” could rightfully be denied.

Why Are Home-Sharing Endorsements From Domestic U.S. Insurers So Inexpensive?

They were designed and written for owner-occupied primary residences and provide minimal coverage enhancements, such as $2,500 in rental furnishings. They are not designed for a secondary short-term rental investment property where the owner does not live on site. For a regularly rented property short-term, you need business insurance.

If I Have the Proper Policy Do I Keep My Homeowner’s or Landlord Policy in Place?

No. The Proper policy is designed to fully replace the current coverage you have. You would cancel your current policy.

Is My Short-Term Rental Really a Business?

Yes, short-term rentals meet the definition of a business under virtually all insurance policies. Also, more and more cities are requiring short-term rentals to register, purchase a business license, pay business occupancy tax, and carry commercial business liability.

How Do I Get Covered for Business Activity?

You buy a business insurance policy. Our policy is a business policy. It covers your business property (rental home/contents), business liability, and the business income it generates.

If I Insure My Short-Term Rental as a Business, Can I Also Stay There?

Yes. There are no standard occupancy restrictions on Proper’s business policy. This means the property has full policy coverage while it’s being used as a short-term rental business or if it’s being used personally by the owner, being used as a mid-term or long-term rental, and if it’s vacant or unoccupied.

My Short-Term Rental Is Also My Primary Residence, Can I Still Purchase the Proper Policy?

Yes. If the short-term rental home is also your primary residence, Proper simply adds $1,000,000 in personal liability and $50,000 in loss of use to relocate in the event the property is being rebuilt. This is very important if you do not carry a homeowner’s policy elsewhere.

What if I Also Live at the Short-Term Rental, Can I Still Purchase the Proper Policy?

Yes. You have the same business exposure. We see every scenario imaginable. You live upstairs and short-term rent the downstairs. You live in the main home and rent out the guest house, etc.

If I Have the Proper Policy Do I Keep My Homeowner’s or Landlord Policy in Place?

No. The Proper policy is designed to fully replace the current coverage you have. You would cancel your current policy.