VACATION RENTAL INSURANCE BUILT FOR OWNERS
For many vacation rental owners, the property is personal. It’s a second home or family retreat that now happens to generate income. Standard Homeowners and Landlord policies were never designed for a rotating door of guests. The Proper Policy was built specifically for vacation rental exposure with comprehensive protection for your property, contents, liability, and revenue.
Specialized coverage. Built for vacation rental risks.
Why Most Insurance Policies Fall Short for Vacation Rentals
The Biggest Insurance Gaps for Vacation Rental Owners
Add up the multi-use of a vacation rental property, and you have major gaps in traditional Homeowners or Landlord insurance. In fact, 95% of vacation rental owners are misinsured with the following gaps present in their policy:
Business activity exclusions when a paying guest is involved
Property entrustment issues for guest-caused damage and theft
Amenities liability often excluded or limited for pools, hot tubs, bicycles, kayaks
Income loss not considered for bookings and cancellations when property is unlivable
Liquor and privacy exposures frequently carved out
Most vacation rental owners don’t know what their insurance policy actually covers until they file a claim. Our free resource below gives you insights into what’s protected and where you’re exposed.
What to Look for in Vacation Rental Property Insurance
As the owner of a vacation rental property, your first thought regarding protection should be vacation rental property insurance. This is the asset itself, what you can touch and feel, such as the building or structure, and the stuff inside, such as furniture, linens, decor, or what insurance calls “contents”.
Great vacation rental property insurance will not only cover perils such as fire, broken water pipes (like a $130k water damage claim), wind, and hail, but also offers protection for backups of sewers and drains, theft, damage, and more. With vacation rental property insurance, the proof is in the policy details, and you must have an agent you trust who can answer the tough questions. You want to know exactly what vacation rental property insurance you have purchased.
No sub-limit on guest-caused damage
Specifically designed to completely replace a Homeowners or Landlord insurance policy
Loss of revenue reimbursed with actual loss sustained, with no time limit (and is only subject to your chosen limit)
Special form “all-risk” or exclusions-based coverage form
Replacement cost valuation for the building(s), roof, and contents
Commercial General Liability built to respond to guest accidents and injuries
Why Hosts Need Comprehensive Vacation Rental Damage Insurance
When we think of complete vacation rental damage insurance, we think of guest damage and theft. This could be as simple as a guest breaking a chair, to as serious as an out-of-control party leaving six figures of property damage.
As a vacation rental owner, you want vacation rental damage insurance that would respond to guest-caused damage and include no sub-limit, meaning you are only subject to your building and contents limits, rather than a separate guest-damage sub-limit.
The same logic applies to theft. Most insurance policies do not cover theft from a guest, but Proper believes theft is a big exposure and should be included in a vacation rental damage insurance product. Proper not only covers theft but has no sub-limit on theft as well.
Vacation Rental Loss of Revenue Protection
You’ve worked hard to turn your vacation rental into an income-producing asset, so great vacation rental property insurance should be at the top of your mind. But what happens when your cash flow is interrupted?
Proper Includes Loss of Business Revenue for Your Vacation Rental
It can take two years to fully rebuild a vacation rental property, and your typical loss of rent policy only pays for 12 months and pays what’s called “fair market value,” which is the average of all rentals in the area. Put simply, fair market value is inferior to vacation rental property insurance.
Proper pays what’s called ‘actual loss sustained’, which is your actual loss. We have no time limit, so you are only subject to the loss of revenue you choose to put on your policy. Our vacation rental property insurance is far superior to our competitors.
The Top Rated Vacation Rental Insurance Provider
When you hand over the keys to your property to a guest, you are entrusting that property to them, and most of the time, there is no damage, but if you are in the vacation rental business long enough, at some point you will need robust vacation rental damage insurance. The Proper Policy is the most comprehensive vacation rental insurance product available on the market to owners and hosts.
Unmatched Vacation Rental Coverage Strengthened by Expert Claims Handling
“I had a guest who inflicted a LOT of damage on my home. But Proper Insurance made it easy to have the confidence of knowing they would stand by their coverage, making us whole for all the damage to our home. It really gave us peace of mind in a very difficult situation. Thank you, Proper Insurance!”
– Sharmalee L.
“Proper was the best choice as my insurance provider. 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.
Frequently Asked Questions: Vacation Rental Insurance for Hosts
What is insurance for vacation rentals?
Insurance for vacation rentals is coverage built for a property that’s rented short-term to paying guests rather than lived in full-time. It combines property and contents protection, Commercial General Liability, and lost business revenue coverage in one policy. Some hosts search for this as vacation home insurance or vacation rental property insurance—the coverage need is the same either way. The Proper policy replaces an owner’s current Homeowners or Landlord policy and offers aligned coverage to the risks of short-term renting. Endorsed exclusively by Vrbo and backed by Lloyd’s of London and Concert Specialty Insurance, Proper Insurance is the nation’s leader in vacation rental insurance, with unmatched coverage in the short-term rental industry.
Is this different from Homeowners or Landlord insurance?
Yes. Standard Homeowners and Landlord policies carry a business activity exclusion that applies the moment you accept a paying guest—Homeowners insurance was never built to cover short-term rental activity. Proper offers a unique Commercial Homeowners policy that replaces your standard Homeowners or Landlord policy and is designed for short-term rental use from day one, consolidating property, business liability, and rental income in one policy. We cover what most others don’t, including guest-caused damage, loss of business revenue, liability for amenities like hot tubs and bikes, and even invasion of privacy and squatters.
Does Proper’s policy replace my HO or Landlord policy?
The Proper Policy replaces a vacation rental owner’s current Homeowners or Landlord policy, offering insurance coverage specifically designed for hosts. Endorsed exclusively by Vrbo and backed by Lloyd’s of London and Concert Specialty Insurance, Proper Insurance is the nation’s leader in vacation rental insurance, with unmatched coverage in the short-term rental industry.
What’s an example of a vacation rental home insurance enhancement?
A great example of a vacation rental home insurance enhancement is damage caused by a guest. Most vacation rental home insurance policies on the market have a limitation or outright exclusion for property entrustment, meaning when you give your keys to a guest, there is no coverage for damage caused by that person. Proper’s unique enhancement or endorsement re-writes this section to state that there is no sub-limit on damage caused by a guest. You are only subject to your building and contents limits, rather than a separate guest-damage sub-limit.
What coverage forms should I look for in vacation rental host insurance?
The foundation of a great vacation rental home insurance policy is the coverage form. As with any type of home insurance policy, you have three options: basic, broad, and special, also known as ‘all-risk’ or exclusions-based. Proper provides a special form of ‘all-risk’ coverage on all its vacation rental home insurance policies. This enhanced exclusions-based form states that every peril is covered unless specifically excluded. Then you add in our unique vacation rental home insurance endorsements for damage caused by a guest, liquor liability, and more, and you have the most complete insurance product a vacation rental homeowner can purchase. Understanding the transfer of risk and pairing this knowledge with a comprehensive policy can help you better protect your vacation rental property and rental income.
Is vacation rental insurance for owners different from a Landlord policy?
Yes. A Landlord policy is built for a long-term tenant paying monthly rent—it isn’t underwritten for a rotating door of short-term guests. Vacation rental insurance for owners adds the business liability, guest-caused damage, and lost revenue protection a Landlord policy was never designed to include.