Vacation Rental Property Insurance
All-inclusive insurance that replaces your homeowner’s policy. Custom-penned for the unique risks of vacation rental and/or short-term rental properties.
What does Vacation Rental Property Insurance Cover:
Commercial Package Policy: coverage for building(s), contents, liability, and income
Building(s): special cause of loss with replacement cost valuation
Contents: special cause of loss with replacement cost valuation
Liability: $1,000,000/$2,000,000 in commercial general liability
Income: actual loss sustained business income coverage with no time limit
Liability coverage continued to amenities: swimming pools, hot tubs, watercraft, bicycles, docks, rec areas, + much more
Enhancement coverage: theft, damage to your rental caused by a guest,
animal/pet liability + more
No standard occupancy restrictions; designed for short-term rentals
Underwritten by Lloyds of London, AM Best’s A
Designed to fully replace the current coverage on the property
Vacation Rental Insurance FAQ’s
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.
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.
Is my short-term rental really a business? Yes. More and more cities like Austin, Santa Barbara, and Chicago are now requiring short-term rental owners to carry and pay for a business license. Note: Starting Feb 2015 in San Francisco Airbnb Hosts will be required to pay 14% hotel tax and carry $500,000 in liability coverage.
How do I get covered for business activity? You buy a business insurance policy. The Proper Insurance vacation rental policy we use 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 a business policy. This means the property is insured while you stay there, friends or family, and of course paying guests.
My short-term rental is also my primary residence, can I still purchase this 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 this 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. This policy is designed to fully replace the current coverage you have. You would cancel your current policy.