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It is important to think about third-party insurance coverage that will help cover damages or losses if you are serious about hosting on Airbnb or simply want peace of mind. Herein lies the role of proper insurance. For good reason, they are the market leaders in the United States for insurance for Airbnb and short-term rentals. Let’s examine their backgrounds, services, and reasons for being the finest in the field.

What is Proper Insurance?

Proper insurance refers to having the appropriate kind and quantity of coverage for your unique needs and situation. In the case of an accident or other covered loss, it makes sure you are sufficiently protected.

Proper Insurance, a Virginia-based company, specializes in providing property and casualty coverage for houses that are rented out for brief periods as holiday rentals. As Airbnb gained popularity, Proper saw an opportunity to offer homeowners insurance policies that were specifically tailored to their requirements.

Despite being a young business, Proper Insurance has had a significant impact on the vacation rental insurance industry. Proper is generally rated as the top source of rental insurance for businesses and is widely endorsed by vacation rental firms like HomeAway.

Note that your property qualifies for proper insurance if you rent out a single room.

Why Proper Insurance?

Proper insurance, in contrast to homeowners insurance, serves as commercial insurance. Some hosts are unaware that even though they own or sublet their property through the Airbnb website, it immediately turns into a business if someone pays to stay there. Homeowners insurance is therefore useless, and claims are nearly always turned down.

Due to this, Proper’s commercial insurance could turn out to be your savior in the event of an accident. Your listing, its contents, any obligations, and revenue from your business will all be insured. As a result, you will be covered in the event of any income loss, property damage, or liability claims. Additionally, you’ll be protected in the event of theft, vandalism, or fire that occurs as a result of your hosting.

Proper Insurance Review 

#1. Full coverage for short-term rentals

For people who rent out their homes temporarily, the right policies serve as both homeowners insurance policies and business insurance policies. It offers liability protection, personal property coverage, and coverage for the structure itself. Additionally, it doesn’t have a vacancy clause like typical homeowners insurance does, so the policy is still in force even when the house is empty.

#2. Replacement cost coverage for all personal property

Actual cash value is frequently used in home insurance plans to replace damaged or stolen personal possessions. Even if the current value of the item is less than what the homeowner initially paid for it, they will still be compensated that amount. On the other hand, Proper insurance employs replacement-cost insurance. The homeowner will receive the money required to replace any things that were damaged or stolen with new ones of equivalent quality.

#3. Business income coverage

Due to the inability to rent out the property while it is being repaired, damage to a short-term rental might result in financial loss for the owner. Homeowners may be compensated for their lost income during this period by suitable coverage.

Proper Insurance Coverage 

To secure your house while you live there, you will need homeowners insurance. Typical elements of homeowner policy include:

#1. Dwelling protection. 

This section of the policy covers your home’s actual structure, including any unattached buildings like fences, swimming pools, and garages. Additionally, your home is protected by dwelling coverage from vandalism, theft, lightning, fire, and other perils.

#2. Personal belongings.

Your home is made up of more than just the physical framework of your house. The protection of your possessions, such as furniture, appliances, and clothing, is a crucial component of your house insurance.

#3. Liability. 

A strong liability plan is essential for short-term tenants since visitors may file a lawsuit against you if they are hurt on your property. If you are sued after being found at fault for an injury, liability aids in covering your legal expenses.

There are plenty of others, but these are the essential features of a homeowner’s policy. For instance, a lot of insurance providers provide extra flood, earthquake, or other specialist plans.

Note that the home options available for Proper’s insurance plan are not listed on their website, but you may find all the specifics when you chat with an agent. 

Proper Insurance costs 

Rental insurance through Proper often costs between $125-291 a month. Typically, a number of things will impact its pricing, such as:

  • Location
  • Size
  • Bedroom count
  • Safety features
  • If you use a property manager,
  • If your property is in a gated community,
  • How long have you lived on the property?
  • Liability risks, such as bunk beds
  • If the property is located by water
  • Age of the property 

Proper Insurance Competitors

Here’s our pick of some of the best competitors of Proper Insurance today.

#1. Safely

Safely offers thorough insurance created especially for vacation rentals. That means their experts are highly skilled in the field and are aware of the hazards and problems associated with renting out your house to strangers.

Their claims procedure is quick and simple (just snap photos and submit the claim online), and they provide coverage for injury and property damage up to $1,000,000. Additionally, Safely provides complimentary guest screening services that identify the possibility of rude visitors, fraud, and even more serious crimes so you may avert high-risk scenarios before they arise.

They only need a name, birthday, and address to verify databases, court records, and previous reports of visitors who have carelessly destroyed property. This further lowers the risk to your property, lessens the likelihood that your neighbors will complain, and raises everyone’s sense of security.

#2. Superhog

Superhog provides guests and property managers who have chosen the option of taking deposits or collecting damage waivers from their visitors with damage and risk protection specifically tailored for holiday rentals.

Up to $5,000,000 is covered by its Host Guarantee policy. Users must have this additional coverage because Superhog isn’t an insurance policy per se and doesn’t cover liability or damage. It covers harm done by a paying visitor during a confirmed stay to the owner’s possessions or property.

Additionally, it uses AI for guest screening and automates the collection of fees from visitors (and refunds if needed), including security deposits and damage waivers.

#3. Rental Guardian

Rental Guardian provides insurance to meet a variety of travelers’ needs, including those of renters, students, and property managers. It presents itself as a digital resource for property managers and provides online claim processing along with other services, including reporting billing, and profitability advice.

Furthermore, it doesn’t provide complete rental insurance as such; rather, it features a damage protection program that guards hosts against unintentional damage to their personal belongings by a confirmed visitor. Its coverage extends up to $5,000 in the US and abroad and $500 to $3,000 domestically.

#4. Generali

Generali vacation rental damage protection originates from the same-named international insurance firm. Its insurance policy for holiday rentals only covers incidental damage brought on by visitors while they are there.

#5. InsuraGuest

Simple vacation rental insurance is available from Insuraguest, which strives to settle most claims within 72 hours. Its maximum limits for medical visitor injury coverage are $25,000, $25,000 for property damage, and $2,500 for theft. 

Furthermore, it interfaces with popular OTAs like Airbnb and Vrbo. Additionally, it allows hosts to halt their coverage when not in use; thus, like with Safely, there is no fee if there are no visitors.

What is the credit rating of Proper Insurance? 

Proper has an A+ rating with the Better Business Bureau (BBB) and is a BBB-accredited company. Additionally, it has gotten a lot of favorable internet customer reviews.

Is proper insurance good for short-term rentals? 

The finest overall short-term rental insurance provider is Proper Insurance, which is difficult to surpass. Additionally, it provides the most thorough and precise vacation rental insurance at competitive rates in all 50 states.

Do you need insurance for Airbnb arbitrage? 

The landlord must have insurance coverage for accidental and willful damage from a guest to the property’s structure and its contents when an Airbnb arbitrageur rents the space for a brief period of time on Airbnb or Vrbo.

How much is VRBO insurance? 

VRBO insurance costs $125.99.

What insurance company has the best financial rating? 

Geico, State Farm, and New York Life are among the businesses with the highest rankings; they all have the best possible grade of A++.

Is insurance score different from credit score? 

Your capacity to pay back loans is what determines your credit score. An insurance score, which is based on data acquired from policyholders with comparable credit profiles who have filed claims with us in the past, indicates the risk that you will be involved in a future accident or insurance claim.

Is it worth getting insurance on Airbnb? 

As a guest, having travel insurance before an Airbnb stay gives you many advantages and protections. A policy can provide financial security for you and your group for a small portion of the price of your stay.

What does Airbnb host insurance not cover? 

The following are excluded from host liability insurance coverage:

  • Injury or damage brought on by deliberate behavior 
  • A guest’s damage to your home or possessions is covered by host damage insurance.

Pros of Proper Insurance

  • It offers you peace of mind.
  • You get an unlimited payout for damages caused by a guest.
  • You get an optional $2 million coverage.
  • It offers a loss of business income payout.
  • Tailored quotes
  • Porper Insurance offers outstanding customer service.


  • Sometimes there are added costs.
  • It may not suit all budgets or hosts.
  • It requires a full understanding of product disclosure.

What are the disadvantages of short-term rentals?

  • The short-term rental vacancy rate is significantly higher than that of long-term rentals. 
  • Short-term rentals are far more vulnerable to seasonal vacancies, last-minute cancellations by tenants, market saturation, and occasionally excessive competition. 

Which is the best Short-term rental company?

The Top 7 Short-Term Rental Websites for Hosts

  • Airbnb.
  • Vrbo. 
  • Expedia. 
  • Vacasa. 
  • Atraveo.

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