The single biggest exposure you have as a vacation rental owner is liability. When you open your door as the owner, you are also opening yourself up to liability risk. This liability risk is there whether you are simply renting a downstairs apartment or your entire property. The Proper Insurance policy automatically provides $1,000,000 / $2,000,000 in Commercial General Liability. You are covered. And, when the vacation rental also “doubles” as your primary residence – $1,000,000 in personal liability is included in the policy.
The second biggest exposure you have as a vacation rental owner is the actual property itself (building and contents). The Proper Insurance® policy insures your building and contents as a business (commercial form) with replacement cost (new for old) on special form (all risk). This means at the time of a covered loss, the property can be occupied by you – the owner, friends or family, paying guests, or even be vacant as we remove the vacancy clause. It’s the only way for a vacation rental owner to properly insure their property.
Another big exposure you have as a vacation rental owner is lost rental income, or business income. You have worked extremely hard to turn your property into a short-term vacation rental business that generates regular income. You now need to protect the business income your vacation rental generates. The Proper Insurance® policy insures your vacation rental income as “actual loss sustained” with no time limit. This means you are only subject to the limit of insurance you choose for your insurance policy.
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