The short-term vacation rentals business model is relatively new, and many insurance companies aren’t able to cater to the unique needs of these properties. If you’re shopping for a policy for your Airbnb, Vrbo, or vacation rental property, you’ll need a specific combination of aspects from homeowners, landlords, and commercial insurance policies to protect yourself and your investment.
In this Proper Insurance review, we’ll break down why Proper is the preferred insurance agency of many short-term rental property owners, what they offer, and what hosts and property managers have to say about working with the company.
About Proper Insurance
Proper Insurance was founded as the “all-inclusive insurance that (…) covers the unique risks associated with short-term vacation rental properties.” They wanted to cater to the needs and tap into the niche market of short-term rentals and vacation rentals offered by the likes of Airbnb and Vrbo, as there aren’t many insurance agencies that provide coverage in this relatively new business model.
Underwritten and backed by Lloyd’s of London, which has over 325 years of experience and expertise in the insurance industry, Proper has your back in whatever you will face with regard to your short-term rental property.
Where Homeowners Insurance Policies Fall Short
A standard homeowners policy isn’t sufficient to cover the needs of your Airbnb or Vrbo property. The same thing can be said of a landlord policy since, in the eyes of insurance agencies, short-term renters aren’t long-term “tenants” (those staying for more than 30 days at a time), and certain liability clauses won’t be applicable in these cases.
When you read the fine print, there’s even a “business exclusion clause” in homeowners’ and landlords’ policies, which means the moment that you rent out your property for short-term stays, your policy is immediately voided.
Most commercial insurance policies also fall short in offering the loss of income and liability coverage that short-term property owners need. Even the insurance coverage that Airbnb and Vrbo offer to their hosts and guests lack the comprehensiveness necessary to protect you in many circumstances.
The Best Insurance for Vacation Rentals
Fortunately, there are insurance companies that have stepped up to the plate and offer short-term and vacation rental property owners the insurance coverage that they need. One of the most prominent in the field is Proper Insurance.
Proper Insurance offers a comprehensive insurance plan for Airbnbs, Vrbos, and other short-term rental properties. They provide a 3-in-1 insurance policy that has components of homeowners, landlord, and commercial insurance.
This is great news for you since Proper can tailor your insurance plan according to the occupancy type: when you want to live on the property and rent out a portion of it short-term rentals (occupancy of fewer than 30 days); long-term tenants (renting out for more than 30 days); and even in moments when the property is unoccupied (that could mean a loss of income for your rental property).
This effectively provides a safety net for you as the host and property owner, your guests and tenants, your property (everything in and outside of it!), and, most importantly, your business.
How Proper Insurance Protects Short-term Rentals
Proper Insurance offers the most comprehensive insurance plans for short-term rentals out there today. Available in all 50 states, you can be sure that wherever you are managing your property from, they’ve got you covered. Here are some of the highlights of how they protect you and your property:
Base Policy – Proper Insurance offers a $1 million general liability coverage, with an option to extend it to $2 million. This already includes every basic thing that you need to look for in a short-term rental insurance plan: property and contents insurance, location-specific coverage, a no forced entry requirement clause for damage and theft, and more.
Business Income Protection – Proper covers lost rental income in the event that you find yourself unable to rent out your property. Another great thing Proper Insurance offers is that you can customize how much income to insure instead of a flat rate; this way smaller rental property owners won’t be paying a superfluous amount on an income they wouldn’t have made anyway.
Pet and Animal Liability – Say your or a neighbor’s pet dog bites your guests during their stay—or the other way around, a guest’s dog bites you—and you find yourself in a sticky situation (this actually happens often!). Proper Insurance offers pet and animal liability coverage with no limitations on breed so you can rest easy when allowing your guests to bring their pets with them for their vacation.
Off-Premise Amenities Coverage – Not only are your in-property furnishings and belongings protected, but Proper can extend coverage on off-premise amenities as well. This includes bikes, boats, golf carts, jet skis, even swimming pools, tennis courts, and more.
Liquor Liability – Many insurance companies are usually hands-off when it comes to liquor and behaviors associated with liquor because they see it as an unwanted risk. Proper Insurance has your back and can protect you and your property from any repair and replacement costs on the damage that is caused by guests who happen to be under the influence.
Bed Bug Protection – Anyone who has dealt with these nasty critters knows how much of a hassle it is to get rid of them, let alone when you have a full-on infestation on your property. Proper Insurance offers this coverage since this can cause your property to be not fit for occupation for an extended period of time—which means a serious loss of income.
Squatter Protection – It may shock you to know how often it happens that there are Airbnb, Vrbo, and short-term rental guests who overstay their welcome. Proper Insurance established this coverage to offer protection to hosts and property owners for guests who refuse to leave. This already includes legal fees and the potential loss of income that could be incurred by squatters.
Proper Insurance Reviews
As one of the pioneers in offering a comprehensive insurance plan for short-term rentals, Proper Insurance has gained the trust of many Airbnb and Vrbo hosts and vacation rental property owners and managers. They have created a reputation of professionalism and being able to satisfactorily offer their service to vacation rental property owners and managers.
They have an impressive 4.8 out of 5 stars rating across Yelp, Facebook, and Google. Here are just some reviews left by those they have worked with:
Here are also some reviews from property managers and business owners that are featured on Proper Insurance’s review section:
Proper Insurance is one of the best—if not the best—insurance companies for Airbnbs, Vrbos, and independent short-term rental property owners and managers. They have excellent customer service, an overwhelmingly positive reputation, and offer a tailored insurance policy right for you and your vacation rental property’s needs. Click here to get a quick 5-minute quote from them so you can relax, knowing that Proper Insurance has your back in any situation.