Homeowner's Insurance

Does my homeowners insurance cover short term rentals?

Commercial homeowner’s insurance for vacation rentals: Homeowners and landlord insurance policies specifically exclude coverage involving “commercial activity”. This means any property or liability claim could be denied as the result of short-term renting your property. New regulations all across the U.S. are now requiring property owners to carry commercial general liability.

There are two types of vacation rental properties:

1. Vacation rental property, zoned as a vacation rental

Your standard insurance usually covers:

- lost rental income

- property damage

- liability for guest injury

Recommended:

- purchase a personal umbrella policy


2. Owner occupied vacation rental property, usually not zoned vacation rental

Your standard home owners insurance usually does not cover:

- lost rental income

- property damage

- liability for guest injury (some insurers cover if you only rent your home out occasionally.

What do large OTAs cover?
Insurance Companies offering additional coverage:

The Proper Insurance® policy is a comprehensive commercial policy, custom-penned by Lloyd’s of London to entirely replace your current coverage.

Proper Insurance® covers both personal & commercial use of your vacation rental: Most vacation rental owners have “dual-use” of their vacation rental; being used as a personal vacation home and a commercial short-term rental. Because the Proper policy has no occupancy or vacancy restrictions, there is coverage in place at all times with us.

Coverage Comparison: Not all insurance is created equal, especially when it comes to short-term vacation rental properties. Beware if your current coverage states any of these following terms:


* Personal Liability (found on a homeowners form)

* Premise Liability (found on a landlords form)

* Dwelling (DP) or Landlord Policy

* Loss of Use

* Medical Pay

* Punitive Damages Exclusion

* Liquor Liability Exclusion

*If you have any these terms on your current policy, please call or email me with questions. I will take the time to explain why the Proper policy is a step above the competition, and is the most comprehensive coverage available in the U.S. today.

Proper Insurance® Policy Highlights: Designed to replace your current coverage.

* Commercial Package Policy: coverage for building, contents, liability, and income.

* Building & Contents: special cause of loss (all risk) with replacement cost valuation (new for old).

* Liability: $1,000,000/$2,000,000 in commercial general liability (extends beyond premise).

* Income: actual loss sustained business income coverage with no time limit.

* Additional $1,000,000 in personal liability when rental “doubles” as primary residence.

* Liability coverage enhancement for animals/pets & liquor.

* Liability coverage extended over amenities: pools, bicycles, small watercraft, golf carts, rec area, + more.

* Property coverage enhancement for theft and damage caused by a renter.

* Vacancy clause removed with no standard occupancy restrictions.

* Underwritten by Lloyd’s of London, AM Best’s Rated A.

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