Protect Your Investment
Whether your cabin is in the mountains of Yosemite or the Beaches of Santa Cruz , this all-inclusive insurance policy replaces your homeowner’s policy. Custom- penned for unique risks of vacation rental and/or short-term rental properties.
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
✓ Designed to fully replace the current coverage on the property
Homeowner’s insurance does not cover vacation rental business activities.
What if a guest was injured while staying at your rental property and claimed you liable? What if a guest accidently damaged or worse destroyed your rental property as a result of a fire?
Facts about Vacation Rental Insurance
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 policy 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 the Lloyd’s Policy?
Yes. If the short-term rental home is also your primary residence, Lloyd’s 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 the 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 Lloyd’s policy do I keep my homeowner’s or landlord policy in place?
No. The policy is designed to fully replace the current coverage you have. You would cancel your current policy.
Call and get your Quote today: (559) 683-4494