Insurance is a contract and not all contracts are created equal. Most property owners are looking to save money on their insurance. What they should be doing is working with an travel insurance company, such as Proper, who pointing out the hidden exposure on being covered while operating a short term rental. With thousands of host insurance claims paid to date, we know the exposure.
Insurance premiums are based on risks, actuarial data, and claim history. An Insurance company needs to collect more in premium than they pay our in claims. Unfortunately, most large domestic insurance carriers run national advertising campaigns claiming to save you money if you switch. Do they save you money and provide you more comprehensive coverage? The answer is no, especially when it comes to your short term rental property.
Vacation rental property owners need no limit on damage caused by a travel guest. Total losses happen from accidental fires all too often, especially if your home has a fire place or old wiring. Your rental property is a big asset and that’s the biggest property exposure you have. Other smaller guest exposures would be vandalism, theft, back up of sewers and drains, or even bed bugs.
Commercial general liability is a must have coverage for Vrbo insurance. Every day travel guests get injured in vacation properties and without bullet proof liability coverage you are exposed. Not only does your liability insurance need a minimum of $1,000,000 per occurrence, but it needs to cover legal defense above and beyond the occurrence limit. The U.S. is a litigious society and frivolous lawsuits are filed every day, but you still need legal defense.