Short-Term Rental Coverage Designed for Today’s Vacation Homeowners
A standard homeowners policy typically excludes short-term vacation rentals because those exposures are treated as business operations rather than a personal residence. If a guest is injured or property is damaged while the home is being rented, a traditional homeowners carrier can deny the claim under business-activity or rental exclusions.
Proper Insurance® fills that gap with a purpose-built Short-Term Rental Insurance program written as a commercial package policy. Built for property owners who list on platforms such as Airbnb or Vrbo — or who take direct bookings — this solution combines property, liability, contents and business income coverages into a single policy that replaces the homeowners policy when rental activity exists.
Ideal Accounts and Program Appetite
This program is a fit when you need a commercial-grade solution for short-term vacation rental exposures. Typical accounts include:
- Single-family homes, condos, or townhomes rented on a short-term basis
- Owner-occupied properties that are occasionally rented to guests
- Second homes or vacation properties converted into steady short-term rentals
- Managers or operators with multiple vacation rental properties
You might have a client who occasionally rents their lake cabin when away, or an owner who runs several beach houses year-round. Proper underwrites a wide range of occupancy patterns, including mixed-use situations where the owner also uses the property.
Coverage Highlights and Advantages
Proper Insurance® issues a full Commercial Package Policy designed specifically for vacation rental risks. Key features agents can offer clients include:
- No standard occupancy restrictions — coverage remains in force whether the property is guest-occupied, owner-occupied, used by friends or family, or vacant between stays
- Up to $1,000,000 in Personal Liability when the rental is also the primary residence
- $50,000 Loss of Use for primary residences to help cover displaced living expenses
- Coverage for Buildings, Contents, Liability, and Business Income included in a single commercial package
- Customizable terms to support mixed-use and seasonal rental operations
Because this program is tailored for short-term rental exposures, it eliminates the uncertainty that comes with relying on a homeowners form that may contain rental exclusions or limited liability limits.
Underwriting Notes and Minimum Premiums
Proper underwrites on account characteristics such as property use, location, construction, and loss history. The program is written on a commercial policy form and is intended to replace the homeowners policy when rental activity exists. There is no stated program-wide minimum premium, which gives flexibility for a broad range of account sizes.
Typical underwriting considerations you should be ready to provide: occupancy patterns (owner-occupied vs. tenant-occupied), average nightly rates and booking platforms, number of units on the same premises, and prior losses. These factors drive capacity, limits, and terms.
Territories and Availability
Proper Insurance®’s Short-Term Rental program is available nationwide in all 50 states and Washington, D.C. Agents can place accounts across major short-term rental markets — including high-demand coastal and resort areas — with a consistent, commercially underwritten product.
Why Work With Proper Insurance®
As a Program Administrator focused on vacation rental exposures, Proper Insurance® offers specialized underwriting and market access for agents placing short-term rental business. Their team understands the evolving platform landscape and regulatory variability in local markets, and they provide a single commercial policy that simplifies coverage for owners and brokers.
Work with Proper when you need: targeted short-term rental expertise, nationwide admitted placement, and a commercial package that avoids homeowners-policy gaps. The program’s flexibility and focused underwriting make it a practical option for both single-property owners and small portfolio operators.
Friends, family, guests—it doesn’t matter who’s staying. Proper covers the property 365 days a year.
Help your clients protect their short-term rental business with Proper Insurance®’s comprehensive and flexible solution.
Frequently Asked Questions
What types of accounts are a good fit for this program?
Ideal accounts include short-term vacation rentals, owner-occupied homes that are occasionally rented, and secondary homes listed on Airbnb or Vrbo. Small portfolios of vacation properties also fit the appetite.
Can this policy replace a standard homeowners policy?
Yes. This is a commercial package policy designed to replace the homeowners policy when rental activity exists, providing property, contents, liability and business income coverage in one contract.
Does the property need to be vacant when not rented?
No. Proper Insurance® covers the property year-round, including periods when it’s used by friends, family, or the owner, and when it is vacant between bookings.
Is this program available in all states?
Yes. The program is available in all 50 states and Washington, D.C., so you can place accounts nationwide.
What limits are available for liability coverage?
The program offers up to $1,000,000 in personal liability coverage when the rental is also the primary residence. Additional liability options may be available depending on account specifics.
Need help placing an account? Connect with a market specialist.