Why Every Vacation Homeowner Should  Consider Short-Term Rental Insurance From Proper Insurance

Michael Chen PA, Realtor at La Rosa Realty Celebration
Published on May 20, 2023

Why Every Vacation Homeowner Should  Consider Short-Term Rental Insurance From Proper Insurance


All vacation homeowners who are part of Airbnb and Vrbo, among other platforms, must take out short-
term rental insurance to protect their property from damage and liability exposure they might have
from having transient guests.

Both Airbnb and Vrbo offer host damage protection programs to homeowners to back up their short-
term vacation rental guarantees. But since these programs are not insurance policies, vacation
homeowners must opt for an additional vacation home rental insurance policy for optimal coverage.
In fact, Airbnb and Vrbo themselves recommend combining their coverage with special short-term
rental insurance, such as the Proper Insurance®, a 4-in-1 holistic insurance policy that covers both
personal and commercial use of your vacation rental, protecting against the most common and
uncommon property damages and liabilities.

Here’s why every vacation homeowner should use short-term rental insurance from Proper!

Does Your Current Policy Have the Following Protections?

Why Opt for a Short-Term Rental Insurance Policy?

Many insurance companies offer short-term rental insurance as an endorsement, which means the
coverage is added to your existing homeowner’s insurance policy. Depending on how the endorsement
is written, a homeowner does not have to pay for continuous coverage, but only for the nights, they
have guests at their property. This helps owners reduce costs on the homeowner’s part if they only plan
to offer their property for rent part-time.

However, most home insurances or landlord policies are not responsible for damages caused by your guests, nor do they include civil liability coverage. If someone were to get hurt in your vacation rental and you had taken out a policy of this type, the insurer would have the right to deny the claim.

The best way to be calm in these unforeseen events is to have specialty short-term rental insurance for
your vacation home. While today more alternatives are available to homeowners, the Proper Insurance
policy stands out for offering vacation homeowners comprehensive coverage for their short-term
vacation rentals.

Designed as a commercial business policy, Proper Insurance® not only covers the commercial business
liability, the owner’s lost income, and their building but also protects against personal liability, which is
not uncommon in the case vacation rental hosts.

Why Get Proper Insurance® When AirCover and VRBO Offer Home Protection Guarantees?

Vacation rental platforms, such as Airbnb and Vrbo, already offer insurance that cover both cases:
Airbnb’s AirCover policy with its latest updates and Vrbo’s Book With Confidence Guarantee, which has
been around for years. However, these insurance programs involve several key exceptions and other
exclusions that vacation homeowners are often unaware of.

Airbnb’s AirCover Insurance

Airbnb’s AirCover policy is available at zero cost to all hosts, offering hosts up to $3 million in damage
protection and access to guest identity verification. Liability coverage comes into play if, by chance, a
guest is injured during an Airbnb stay or if their property is damaged or stolen while staying on your
property. However, Airbnb insurance does not cover reservations made through other channels or the host’s website, so having a short-term rental insurance policy is the best for these cases.
AirCover does not cover damages produced outside the periods of stay, nor those not directly
attributable to the guests. It won’t cover any incident or injury caused by an unintentional act, damage
to your property (covered under damage protection), or other exclusions. If a pipe suddenly bursts, it
doesn’t matter if someone is in your accommodation: AirCover will not cover it since the guest did not
cause the damage. Therefore, Airbnb suggests vacation homeowners opt for additional personal insurance for optimal coverage against property damage caused by their temporary tenants or guests.

Vrbo’s Protection Program

Vrbo also entitles homeowners to liability protection of up to $1 million if they process bookings
through Vrbo. Vrbo’s rental insurance policy covers incidents of property damage or bodily injury to
third-party. For example, Vrbo’s insurance protects you from medical costs if guests sue you for their
bodily injury while on your property. However, Vrbo insurance does not protect vacation homeowners against stolen or damaged items and property, and therefore, recommends owners get a special short-term rental insurance policy to get optimal coverage.

Proper Insurance Policy for Optimal Coverage

Proper Insurance is the best option for vacation homeowners seeking an exclusive short-term rental
insurance policy that offers coverage against the most common and uncommon damages and incidents.
In the case of short-term vacation rentals, a one-size-fits-all insurance policy doesn’t work. By focusing
only on the short-term rental sector and using their unmatched knowledge base, Proper’s team has
developed a specialty insurance policy offering both personal and commercial use of vacation rentals.
● For commercial business liability, Proper Insurance offers two coverage options: $1,000,000 &
$2,000,000, to cover you against liability, owners’ most considerable exposure
● Proper Insurance offers optimal property insurance coverage for your building and contents
with no occupancy restrictions
● Proper’s business income protection covers your loss of income from your short-term vacation
rental due to any unwanted events
By having a holistic insurance policy like Proper Insurance, you rest assured that you’re covered against a
wide range of exposures, including:
● Property Entrustment, offering full coverage against thefts, malicious damages, and vandalism
● Pet and Animal Liability, covering dog bites-the most costly liability insurance claim
● Protection for Amenities on and off-Premise, covering damages to boats, bikes, hot tubs,
scooters, etc.
● Squatter Protection, covering legal and lost income in case your guests become squatters
● Bed Bugs Protection, a Proper-trademarked, custom protection tailored for short-term vacation
● Liquor Liability to cover you against damages that intoxicated guests may cause to your
property or in case the alcohol left behind ends up in the wrong hands

Final Thoughts

You’ve worked hard and invested in turning your vacation home into an income-generating short-term
rental. Protecting it against all common and uncommon incidents and damages through a special short-
term rental insurance policy is the best you can do. Proper Insurance offers coverage against the most
frequent and infrequent incidents and gives you the peace of mind you deserve. Visit the Proper Insurance today to learn more about the policy.

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