When it comes to Airbnb, VRBO and vacation rentals, Proper Insurance® offers a commercial-grade short-term rental policy designed specifically for the exposures created when owners rent all or part of a property for short periods. With the growth of the vacation rental market, more homeowners and investors are converting properties to short-term rentals — and standard homeowners (HO) or dwelling (DP) forms often exclude that activity. Proper’s program is built to replace HO/DP coverage where needed and give you the business coverages underwriters expect for rental operations.
Overview — Proper Insurance Airbnb Insurance
Proper Insurance provides a specialty short-term rental program underwritten by Lloyd’s of London with an AM Best rating (A). The program is set up for brokers and agents who need a comprehensive commercial policy that covers building, contents, business income and commercial general liability (standard limits up to $1,000,000/$2,000,000). The program includes online quoting and binding, same-day appointment capability, and marketing materials you can use with clients.
Target Classes and Ideal Accounts
- Single-family homes and condos
- Townhomes and duplexes
- Cabins and cottages
- Apartments converted to short-term rentals
- Investor portfolios of vacation rental units (small scale)
- Other short-term rental types — flexible appetite for many property styles
Good fits are properties rented frequently on platforms like Airbnb or VRBO, or owner residences that are occasionally rented for short stays. The policy is intended to cover accounts where business activity is the primary exposure, and that require commercial forms rather than an HO or DP endorsement.
Coverage Highlights and Advantages
- Commercial package wording for building, contents and business income
- Commercial General Liability — standard limits to $1,000,000/$2,000,000
- Liability enhancements for animals/pets and host liquor exposures
- Property enhancements for theft and renter-caused damage
- No standard occupancy restrictions — designed specifically for short-term rentals
- Ordinance or law enhancement available
- Options for direct billing and same-day appointments
- Online quoting and quick online binding
Underwriting Notes and Typical Restrictions
The Proper policy is positioned as a commercial solution to replace HO or DP coverage when rental activity creates a business exposure. Underwriting focuses on occupancy, management, loss history and the property’s condition. Typical characteristics that enhance acceptability include professional cleaning/turnover procedures, gated or monitored access, and routine maintenance records.
Accounts that commonly require additional review include high-rise or large multi-unit commercial complexes, properties with a history of frequent or severe claims, or operations that function like a hotel with daily staff and on-site management. If you have a borderline account, Proper’s underwriting team offers quick feedback through the online quoting platform.
Examples of Accounts That Fit
- You have a homeowner who rents their condo on Airbnb several times per month and needs liability and property coverage that replaces their HO policy while rented — this program can provide a commercial policy that fills the HO gaps.
- An investor owns three cabins near a tourist area and wants one policy that covers building, contents, business income and liability across the units — Proper’s commercial package is designed for that kind of small portfolio.
Territories and Appointment
Available in: AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, DC, WV, WI, WY. This program is non-admitted (surplus lines) in applicable jurisdictions; please follow your state surplus lines placement rules when submitting.
Why Work With Proper Insurance on Short-Term Rentals
- Specialized short-term rental underwriting and commercial policy forms that address common HO/DP gaps
- Fast appointment and binding process with online tools and agency marketing support
- Broader liability and property enhancements for renter exposures, animals and limited liquor exposures
- Access to Lloyd’s of London paper and an experienced underwriting appetite for vacation rental risks
We offer custom marketing materials tailored to your agency and an easy online quoting platform; you can learn more about appointment requirements and the agent onboarding process on Proper’s agent page: Airbnb Insurance.
Frequently Asked Questions
What types of accounts are a good fit for Proper’s Airbnb Insurance program?
Small portfolios of vacation rentals, single-family homes, condos, cabins, townhomes and duplexes that are rented short-term through platforms like Airbnb or VRBO. Ideal accounts are properties where rental activity is more than an occasional endorsement exposure and where a commercial policy is appropriate.
Can this policy replace a homeowner (HO) or dwelling (DP) policy?
Yes. Proper’s commercial policy is designed to replace HO/DP coverage when short-term rental activity creates a business exposure that typical homeowner forms exclude. Underwriters will evaluate occupancy, use and loss history as part of placement.
Are there occupancy or guest limits that disqualify a property?
The program is designed without standard short-term occupancy restrictions, but underwriters will review specific risk factors such as guest capacity, on-site management style, and history of renter disturbances. High-risk features or frequent significant claims may require referral or additional terms.
Which states are supported and how is this program placed?
This program is available in the listed states and the District of Columbia. It is placed on a non-admitted (surplus lines) basis where appropriate, so be sure to follow your state’s surplus lines compliance procedures when submitting business.
Need help placing an account? Connect with a market specialist.