Are you torn between Proper Insurance and Foremost for your vacation rental?
Choosing the right insurance is more than a checkbox; it’s about peace of mind and financial security. With the unique risks of short-term rentals, standard homeowners policies or Airbnb’s host protection might not suffice.
This guide cuts through the clutter, comparing Proper and Foremost on critical aspects like coverage, cost, and customer service.
Discover which insurer truly aligns with your rental’s needs, ensuring you’re not just insured, but properly insured.
Dive in to make an informed choice that safeguards your investment and keeps your guests secure.
What is Proper Insurance?
Proper Insurance, founded to cater to the unique risks of short-term vacation rental properties, offers a comprehensive insurance solution for Airbnb, VRBO, and similar platforms.
This insurance is a complete replacement for standard homeowners insurance, designed specifically for the short-term rental market. It’s underwritten by Lloyd’s of London, known for over 325 years of experience in the insurance industry, ensuring reliability and expertise.
Key Features of Proper Insurance
Proper Insurance is endorsed by HomeAway and VRBO as the preferred insurance for short-term rentals. It’s a 3-in-1 policy combining homeowners, landlord, and commercial insurance, covering both personal and business liabilities.
Hosts can select their coverage amount and tailor their policy to their specific needs, including options for different types of occupancy and periods of vacancy.
The policy covers various scenarios, including income loss, bedbugs, off-premise activities, and legal defense. It also provides $1 million in general liability coverage, extendable to $2 million, and includes specific clauses like no forced entry requirement for damage and theft.
Flexibility and Inclusiveness
Proper Insurance does not impose vacancy or occupancy restrictions and accepts different business statuses as the name insured.
Proper Insurance has been a game-changer for many vacation rental owners, offering peace of mind and comprehensive protection. Hosts appreciate the ability to customize their coverage and the extensive range of scenarios covered.
Testimonials highlight the insurer’s responsiveness and effectiveness in handling claims, particularly in complex situations like damages caused by guests or income loss due to property unavailability.
What is Foremost Insurance?
Foremost Insurance, a part of the Farmers Insurance Group, has been a pioneer in the insurance industry since its inception in 1952 in Michigan.
Initially focusing on mobile homes and cars, Foremost has evolved to become a leader in insuring various properties, including vacation rentals. Their approach to landlord insurance is particularly noteworthy for those managing short-term rental properties like Airbnb and VRBO.
Key Features of Foremost Insurance
Tailored Landlord Insurance
Foremost takes landlord insurance a step further, offering policies specifically designed for short-term rental properties. This includes a standard landlord policy with additional options tailored for vacation rentals.
One of the standout features of Foremost Insurance is the ability to customize additional coverages. This flexibility allows property owners to tailor their policies to their specific needs, ensuring comprehensive protection.
Comprehensive Base Coverage
The base policy covers the physical structure and possessions inside the property. It includes actual cash value, agreed loss settlement, and comprehensive property coverage. Optional replacement cost and liability coverage are also available.
Loss of Income Coverage
Foremost Insurance provides coverage for lost rental income, a crucial aspect for vacation rental owners, ensuring financial stability in case the property becomes unrentable due to covered events.
Named Perils Coverage
This specific coverage protects against damages caused by natural calamities and other explicitly outlined perils, with the option to include additional risks at an extra cost.
How to Compare Proper Insurance and Foremost Insurance?
When deciding between Proper Insurance and Foremost Insurance for your vacation rental, it’s essential to weigh their features side by side.
Below is a comparative analysis to help you understand their offerings better:
|Type of Policy
|Specialized short-term rental insurance
|Landlord insurance tailored for short-term rentals
|Customizable based on the host’s preference
|Varies based on property size and location; customizable
|Included; up to $2 million
|Optional; amounts vary
|Covers lost rental income; customizable amount
|Covers lost rent income in case of a covered event
|Broad range including bedbugs, off-premise activities
|Named perils; option to include extra perils at additional cost
|Extensive, including legal defense, pet liability
|Various, including extended replacement cost, liability coverage
|Restrictions / Limitations
|Few; designed for flexibility
|Requires that the owner not occupy the property while renting (for VRBO)
|Customizable based on coverage choices
|Depends on chosen coverages and property specifics
Pros and Cons:
- Proper Insurance:
- Pros: Highly customizable, extensive coverage options, no vacancy restrictions, covers both personal and business liability.
- Cons: Potentially higher cost due to extensive coverage.
- Foremost Insurance:
- Pros: Tailored for short-term rentals, customizable add-ons, part of a well-known insurance group.
- Cons: Some restrictions on owner occupancy, liability protection is optional.
Choosing the Best Insurance for Your Situation
Here are a few things to consider when choosing an insurance for your vacation rental:
- Type and Frequency of Rentals: If you frequently rent out your property or have multiple properties, look for a policy that offers flexibility and broad coverage.
- Risk and Exposure Assessment: Evaluate the specific risks associated with your rental property, such as location, type of guests, and property features.
- Cost-Benefit Analysis: Compare the premiums against the coverage offered. Higher premiums might be justified for more comprehensive coverage.
- Read the Fine Print: Understand the exclusions, conditions, and limitations of each policy. Pay attention to details like coverage limits and scenarios covered.
- Consult Experts: Speak with independent agents or insurance experts who can provide unbiased advice based on your specific needs.
Remember, the right insurance policy is one that offers adequate protection tailored to the unique aspects of your vacation rental property, ensuring peace of mind and financial security.
Wrapping up our exploration of vacation rental insurance, it’s clear that both Proper Insurance and Foremost Insurance offer valuable solutions tailored to the unique needs of short-term rental properties. The necessity of adequate insurance in this sector is undeniable, given the distinct risks and liabilities involved.
If you’re residing in your rental property or seeking comprehensive, flexible coverage, Proper Insurance is a good choice for you. Its customizable policies, extensive coverage options, and adaptability to various rental scenarios make it an ideal choice for ensuring thorough protection and peace of mind.
Foremost Insurance, with its tailored landlord insurance and customizable add-ons, also serves as a solid option, especially if you’re managing properties remotely.
We recommend evaluating your specific requirements, the nature of your rental, and the desired level of coverage. To make an informed choice, consider getting quotes from both Proper Insurance and Foremost Insurance.
For more information and to receive a personalized quote, visit Proper Insurance’s website. Choosing the vacation rental right insurance is a crucial step in securing your investment and providing a safe, worry-free experience for your guests.
Act now to protect your vacation rental with the insurance that best fits your needs.
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