Proper Insurance for Short-Term Rentals: A Review

What Proper Insurance is

Proper Insurance sells a true commercial policy, what Proper calls a "custom penned" policy, written with Lloyd's of London and Concert Specialty, built to cover the risks of a short-term vacation rental. Proper positions the product as a replacement for a homeowner or landlord policy rather than an add-on, and it's exclusively endorsed by Vrbo as its preferred insurance provider. This is short-term rental insurance in the fullest sense: a single commercial policy meant to stand on its own.

The distinction matters because a standard homeowner policy is written for a residence you live in, and most carriers treat frequent paid guest stays as a commercial activity the policy was never priced for. That gap is what a dedicated commercial policy like Proper's is meant to close. Rather than layering an insurance endorsement onto a personal policy, Proper replaces the personal policy with one written for the exposure.

What it covers

Proper writes four coverage lines into one policy:

• Commercial liability insurance for guest injury and third-party claims.
• All-risk building coverage with replacement cost valuation, described by Proper as "new for old."
• Contents coverage on the same replacement cost basis.
• Business income, paid on the actual loss sustained, which functions as business interruption insurance when a covered loss takes the property offline.

All-risk property coverage means the policy responds to any cause of loss that isn't specifically excluded, which is broader than a named-peril form that pays only for listed causes. Replacement cost valuation, or "new for old," is meant to pay to rebuild or replace without a deduction for depreciation, so an older roof or a dated sofa is valued at what it costs to replace rather than its worn-down cash value. Read the specific exclusions in the policy form, since an all-risk policy still carries a list of them.

Proper also adds personal liability when the rental doubles as a primary residence, so an owner who lives in the home part of the year isn't left with a gap between personal and commercial exposure. The business income line carries no time limit on the payout, according to Proper, which sets it apart from policies that cap lost-income payments at a set number of months.

Stated limits and costs

• Commercial general liability occurrence limit: $1,000,000 standard, with $2,000,000 available.
• Additional personal liability when the rental doubles as a primary residence: $1,000,000.
• Deductibles: not publicly stated on Proper's homepage.
• Premium: not publicly stated; Proper quotes each property individually.

An occurrence limit is the most the policy pays for any single covered event, so the $1,000,000 standard limit sets the ceiling per incident. Proper states the liability limit "suffices for all STR proof of insurance requirements," which matters if a platform or a municipality asks you for a certificate of insurance naming a required limit. Because the figure a given platform or lender requires varies, confirm the threshold you need before you rely on that claim.

How you buy it

You buy directly from Proper. Coverage is offered in all 50 states and Washington, D.C. Proper's policy-replacement positioning points to a standard annual commercial term, though the homepage doesn't state the word "annual" verbatim, so confirm the term length and renewal conditions in writing before you sign. Ask for the full policy form and the declarations page so you can read the exclusions, deductibles, and sub-limits that a homepage summary doesn't show.

Who it fits

Proper fits owners of dedicated short-term rentals who want one commercial policy to carry building, contents, liability, and lost income, and who would rather not stack a landlord policy against a separate insurance endorsement. It's a natural match for Vrbo hosts given the endorsement, and for anyone who needs a high liability limit to satisfy a platform or a lender. The endorsement signals that Vrbo names Proper as its preferred provider; it's a marketing relationship rather than a guarantee about your individual claim, so read the coverage on its own merits.

Owners who host only occasionally, or who rent a room in an owner-occupied home, may find a lighter endorsement on an existing policy is enough. A full commercial replacement policy is built for property used primarily as a rental, and its structure reflects that.

Caveats and gaps

• A full commercial policy is a larger commitment than a per-stay product. If Proper follows the standard annual term its positioning implies, you're committing for the year, so weigh that against per-booking options if your calendar is light.
• Deductibles and premiums are not published, so you can't compare costs without a quote.
• The product is built for dedicated rentals. That strength is a poor match for a casual host, who may be paying for more policy than the use case needs.
• All-risk coverage still carries exclusions, so read the form rather than assuming every cause of loss is covered.
• Proper isn't a Hostaway marketplace partner as of the date of this review, so there's no in-dashboard integration.

Read this as a starting point rather than advice, and pin down the terms, exclusions, and limits with Proper and a licensed agent before you buy.