Proper Insurance Review & Complaints: Vacation Rental Insurance (2024)

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Proper Insurance is a specialty company that caters to the needs of people who own and operate short-term vacation rentals. Their coverage includes homes listed on Airbnb, VRBO, and similar services.

Who is Proper Insurance?

Proper Insurance is a Virginia-based property & casualty insurance that focuses solely on insuring homes that are used as vacation rental properties. The company was created in response to the growing popularity of short-term rentals through services like Airbnb, and the lack of access to policies designed specifically for this sort of use.

Policies for property owners through Proper are underwritten by Lloyd’s of London, one of the best-known and largest specialty and reinsurance companies in the world. The policies are available for property owners and property managers of homes across the country, and they are sold directly through the company website or over the phone. Independent agents may also sell these products, although the relative newness and specialty nature of the policies may make it more difficult to locate an insurance agent.

Proper is endorsed by major vacation rental site HomeAway and is recommended by more than a dozen other similar sites.

What policies can you get?

Proper Insurance writes solely short-term rental insurance policies; these replace a homeowner’s or landlord policy and provide all the same coverage as well as protecting against the added risks of running a short-term rental.

Policies can be taken out for homes that are used as full-time vacation rentals, homes that are sometimes owner-occupied and sometimes rented, and even homes that are owner-occupied full time with a portion of the house – from a suite to a single room – that is regularly rented out through a service like Airbnb. Landlords should compare Airbnb vs renting your home to decide what is the better option.

The Proper policy combines the coverage of a homeowner’s policy with that of a commercial package, along with the coverage you would get with a landlord policy. These are available for current homeowners, short – term vacation rental owners like Airbnb rentals, and more for property coverage.

The basis of the policy is essentially a commercial package policy, covering the dwelling with no limitations on use and all the contents. It also includes commercial liability and business income for lost rents when the home is being repaired after a covered claim. The named insured can be an individual or a business, including an LLC or sole proprietorship.

Liability

The commercial general liability is available with limits of either $1 million or $2 million, and there is also $1 million in personal and advertising injury coverage.

The comprehensive liability covers you for all risks, including swimming pools and hot tubs, and provides coverage for things like animal liability, liquor liability, invasion of privacy suits, and more.

Contents

The contents portion of the policy provides replacement cost valuation at all all-risk level. This includes everything in the home, from furniture to artwork.

Coverage includes all damage or theft by a renter, with no limits on theft. There is no limit to the level of coverage that can be purchased for contents.

Business Income

This coverage is similar to the loss of rent coverage you would find in a landlord’s policy. It pays out on the actual loss amount based on revenue.

There is no coverage limit for business income, and it is again covered on an all perils basis. There is also no time limit on this coverage, so you can recoup lost income for as long as it takes to make the home rentable again.

How are the company’s rates?

Proper does offer online quoting for property insurance, which is unusual for this type of insurance company. Because short-term rentals vary so widely in terms of size, value, rental cost, and liability risks, it would be difficult to compare quotes on a vacation property.

We went through the quoting system as a test and found it relatively straightforward and simple. Our quote for a 3-bedroom, 1500 square foot, single-family residence in Los Angeles came out to $1,612.91 a year. Of course, this is only comparable to a home of the same size, of the same value, and in the same zip code, but it seems reasonable and not at all out of line. Looking at the California home insurance guide gives you a point of comparison.

Proper offers a very specialized and unusual sort of policy, which means there really aren’t any competitors to which we can compare this policy. When obtaining quotes, it is important to remember that the rates are not comparable to a regular home insurance policy, even if a short-term rental endorsement is available. The coverage is simply too different to compare.

Claims Process at Proper Insurance Review & Complaints

Ease of Filing a Claim

Proper Insurance offers multiple options for filing a claim, ensuring convenience for policyholders. You can file a claim through their online platform, over the phone, or by using their mobile app. This flexibility allows you to choose the method that suits you best, making the claims process hassle-free.

Average Claim Processing Time

While the article does not provide specific information about the average claim processing time, Proper Insurance’s commitment to customer satisfaction is reflected in its efficient claims handling. Policyholders can expect timely responses and resolutions, ensuring that their needs are met promptly.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback on Proper Insurance’s claim resolutions and payouts is overwhelmingly positive. The company has earned an A+ rating from the Better Business Bureau (BBB) and has received high praise from customers.

Reviews highlight excellent claims experiences, helpful staff, and dependable coverage. This positive feedback demonstrates Proper Insurance’s dedication to delivering on its promises.

Proper Insurance Review & Complaints Digital and Technological Features

Mobile App Features and Functionality

Proper Insurance offers a user-friendly mobile app that enhances the convenience of managing your insurance policy. The app provides features such as easy access to policy documents, claims filing, and updates on coverage.

With a focus on user experience, the mobile app ensures that policyholders can efficiently navigate their insurance needs on the go.

Online Account Management Capabilities

Managing your insurance policy online with Proper Insurance is a seamless experience. Their online account management platform allows policyholders to access policy details, make payments, and review coverage options with ease.

The user-friendly interface simplifies the process of keeping your policy up to date and ensuring that you have the protection you need.

Digital Tools and Resources

Proper Insurance offers a range of digital tools and resources to empower policyholders. These resources include informative guides, FAQs, and educational content to help customers understand their insurance coverage better.

With these digital tools at your disposal, you can make informed decisions about your policy and ensure that you have the right protection in place.

Are ratings and consumer reviews positive?

Proper Insurance has an A+ rating with the Better Business Bureau (BBB), with only one complaint on file in the past three years. Reviews can give you insight into how the company operates and give you peace of mind about your property management.

The reviews left on the BBB page have a 93% positive rating. There are 12 reviews on the company’s Facebook page and all of them are 5-star. The reviews are mixed between actual customers and insurance agents who work with Proper. Customer service reviews cite excellent claims experience, helpful staff, and solid coverage.

Proper has an overall 4-star rating on Yelp based on nine reviews. There are a couple of negative reviews, mainly regarding denied claims. Properly responds to all reviews, which is a positive thing for any insurance company.

Overall, this company has a very good reputation. They are amongst the best insurance companies on the market.

Why do you need special vacation rental insurance for your property?

Most vacation rental owners carry either a homeowner or landlord insurance policy, both of which have significant coverage gaps. Homeowner insurance is designed for an owner-occupied property, while a landlord policy is designed to be tenant-occupied.

Vacation rentals are different. They typically have three uses throughout the year: rental guest stays, owner’s vacations, and periods of being unoccupied. You require a vacation rental insurance policy that can cover all three.

Why is Short-Term Rental Insurance important?

Claims for short-term rentals are often denied by homeowner‘s insurance policies because vacation rentals function as a business. Most homeowners policies carry a “business activity exclusion”. A short-term rental insurance policy provides coverage for the building(s), contents, business liability, and income that the rental generates. This policy is designed to replace your current homeowners or landlord insurance policy.

What’s the bottom line?

If you have any sort of short-term vacation rental situation, Proper is well worth a closer look. Although other insurers are moving to help provide some coverage, Proper offers the most comprehensive and specific coverage for vacation rentals we have seen anywhere. With the backing of Lloyd’s of London and plenty of happy customers, they appear to be a solid bet.

By having the proper vacation rental insurance, you’re not only taking the necessary steps to mitigate financial risk, but you’ll give yourself peace of mind during the busy vacation season.