Vacation rentals have changed the way people invest in property. What used to be a spare room or a second home has become a real business for many hosts. With that shift comes real risk. Unfortunately, many hosts do not realize that standard homeowners insurance was never designed to protect short term rentals.
This is where Proper Insurance enters the conversation.
Proper Insurance is a specialty insurer focused entirely on vacation rentals. With more than one hundred thousand policies active across all fifty states, Proper has become a leading name for hosts who want serious coverage that actually reflects how short term rentals operate.
In this review, we will walk through what Proper Insurance is, how it works, what it covers, what it does not, and who it is best suited for.
Why Standard Insurance Often Fails Vacation Rental Hosts
Many hosts assume that homeowners or landlord insurance will cover their rental activity. In most cases, that assumption is incorrect.
Traditional homeowners insurance is designed for owner occupied homes, not for properties that are rented to paying guests. Once a property is used as a short term rental, the risk profile changes significantly. There are more people coming and going, higher liability exposure, and increased wear and tear.
Landlord policies also fall short. They are built for long term tenants, not rotating guests who stay for days or weeks at a time.
In some cases, hosts only discover this gap when a claim is denied or when their policy is canceled after a loss.
Proper Insurance was built specifically to solve this problem.
What Is Proper Insurance
Proper Insurance is a United States based insurance provider that specializes exclusively in short term vacation rental coverage. The company works with major underwriters to offer a policy designed from the ground up for properties listed on platforms like Airbnb and Vrbo.
Unlike add on riders or platform guarantees, Proper provides primary insurance coverage. That means the policy stands on its own and does not rely on a hosting platform to pay claims.
Proper Insurance policies are available in all fifty states and cover a wide range of property types including single family homes, condos, cabins, beach houses, and multi unit vacation rentals.
How Proper Insurance Works
Proper Insurance operates differently from standard insurance companies because it focuses on one category of risk.
The process begins with an application where the host provides details about the property, location, amenities, and rental activity. Based on this information, Proper structures a policy that reflects the real exposure of a short term rental.
Once active, the policy provides year round coverage whether the property is occupied by guests or vacant between bookings.
In the event of a covered loss, claims are handled through established insurance carriers, not through a hosting platform. This gives hosts a clear and formal claims process backed by real insurance contracts.
What Proper Insurance Covers
One of the main reasons hosts choose Proper Insurance is the breadth of coverage. The policy is designed to address the most common and costly risks faced by vacation rental owners.
Property Damage Coverage
Proper Insurance covers physical damage to the structure and contents of the rental property. This includes damage caused by guests, accidents, and covered events like fire or storms.
Furnishings, appliances, and other items used to operate the rental are included as part of the coverage.
Rental Income Protection
For many hosts, rental income is not a side benefit. It is a key source of cash flow.
Proper Insurance includes coverage for lost rental income when a covered claim makes the property temporarily uninhabitable. This is a major difference from many traditional policies, which do not account for short term rental income.
Host Liability Coverage
Liability is one of the most significant risks in short term rentals.
Proper Insurance provides liability protection if a guest is injured on the property and holds the host responsible. This includes legal defense costs and potential settlements, subject to policy limits.
This coverage extends beyond basic slip and fall scenarios and reflects the reality of guest use.
Amenity and Activity Liability
Vacation rentals often include amenities that increase both value and risk. Pools, hot tubs, docks, fire pits, bicycles, and similar features are common.
Proper Insurance includes coverage for amenity related liability, which is often excluded or severely limited under standard policies.
Theft and Vandalism
Guest related theft and intentional damage are covered under Proper Insurance. This is particularly important for furnished properties that experience frequent guest turnover.
Pest and Bed Bug Coverage
One of the most unique aspects of Proper Insurance is coverage for pest related issues including bed bugs.
Many insurance policies exclude this entirely. Proper recognizes that pest issues are a real risk for short term rentals and provides coverage that reflects that reality.
What Proper Insurance Does Not Cover
No insurance policy covers everything, and Proper Insurance is no exception.
Normal wear and tear is not covered. Maintenance issues that develop over time without a specific covered cause are also excluded.
Hosts should also be aware that policy terms and limits vary by property and location. It is important to review the specific policy documents to understand exclusions and conditions.
Proper Insurance vs Airbnb AirCover
Airbnb offers AirCover as a host protection program, but it is not insurance.
AirCover is subject to platform terms, exclusions, and discretionary decisions. It is also secondary to any primary insurance the host carries.
Proper Insurance provides primary coverage backed by an insurance contract. Claims are handled through formal insurance channels rather than platform support systems.
Many experienced hosts view AirCover as a supplement, not a replacement, for real insurance.
Proper Insurance vs Homeowners or Landlord Insurance
Using homeowners insurance for a short term rental can create serious problems. In some cases, insurers may cancel a policy after discovering rental activity. In others, claims may be denied outright.
Landlord insurance is designed for long term tenants and does not reflect the operational reality of vacation rentals.
Proper Insurance eliminates this mismatch by insuring the property exactly as it is used.
Who Should Consider Proper Insurance
Proper Insurance is best suited for hosts who take their rental business seriously.
This includes hosts who rely on rental income, owners with higher value properties, hosts offering amenities, and investors managing multiple units.
It may be more coverage than a very casual host needs, but for those with meaningful exposure, the policy provides clarity and peace of mind.
Is Proper Insurance Legit
Proper Insurance has been operating for years and has issued over one hundred thousand policies nationwide. It works with established insurance carriers and provides coverage through formal insurance contracts.
Its focus on one category of risk has allowed it to build a strong reputation within the short term rental community.
Pros and Cons of Proper Insurance
Pros include comprehensive coverage, income protection, liability coverage for amenities, and nationwide availability.
Cons include higher premiums compared to basic policies and the fact that it may not be necessary for hosts with minimal rental activity.
How Much Does Proper Insurance Cost
The cost of Proper Insurance varies based on location, property value, amenities, and rental activity.
While it is generally more expensive than homeowners insurance, the pricing reflects the expanded coverage and risk profile of short term rentals.
For many hosts, the cost is justified by the protection it provides.
How to Get Started With Proper Insurance
Getting started involves completing an application and providing accurate details about the property and its use.
Being transparent about amenities and rental activity helps ensure the policy is properly structured from the start.
Final Verdict
Proper Insurance fills a critical gap in the short term rental market.
For hosts who want coverage that aligns with how their property is actually used, Proper Insurance offers one of the most comprehensive solutions available in the United States.
It is not the cheapest option, but it is purpose built, widely adopted, and designed to protect both property and income.
For serious Airbnb and vacation rental hosts, Proper Insurance is worth strong consideration.