Proper Homeowners Insurance Review: Comprehensive Protection for Short-Term Rentals

This homeowners insurance is a good fit for: Owners of short-term rentals seeking complete protection.

Proper insurance fills a unique niche in the industry, offering some of the most comprehensive protection around for short-term rentals. Whether the homeowner lives there part-time or not, a Proper policy can provide complete coverage for the property itself as well as liability protection for the owner. Read our full Proper homeowners insurance review to learn more.

Top perks

Complete coverage for short-term rentals

Proper policies pull double duty as homeowners insurance policies and business insurance policies for those who rent out their places to others on a short-term basis. It includes coverage for the building itself, personal property, and liability protection. Plus, unlike traditional homeowners insurance, it has no vacancy clause, so the policy remains in effect even if the home is unoccupied.

Replacement cost coverage on all belongings

Many homeowners insurance policies use actual cash value to replace personal property that's damaged or stolen. This pays the homeowner the current value for the item, even if that's less than what they originally paid for it. Proper, on the other hand, uses replacement cost coverage. This pays the homeowner the amount they need to replace their damaged or stolen items with new ones of comparable quality.

Business income coverage

Damage to a short-term rental can cause the owner to lose money due to the inability to rent out the property while it's being repaired. A Proper policy can help reimburse homeowners for their lost income during this time.

What could be improved

Options for bundling

Currently, Proper only sells policies for short-term rentals. It doesn't offer traditional homeowners insurance, auto insurance, or any other type of coverage. So it may not be ideal for those looking to bundle their insurance all in one place.

When looking for an insurer that enables you to bundle: Allstate is worth considering. It's one of the few large home insurers to offer coverage for home-sharing costs, including coverage for renters stealing or damaging the property. The company also offers many other types of insurance, including auto insurance. But its home-sharing coverage isn't as comprehensive as Proper's.

When looking for more traditional landlord insurance: Farmers is a worthy pick. It provides coverage for the dwelling as well as liability coverage if the tenant is injured and the homeowner is found responsible. But this policy is geared more toward long-term rentals than short-term rentals like Proper.

Proper insurance is generally pretty affordable, but costs can vary significantly based on the size and construction of the rental as well as the amount of personal property that needs insuring. It also depends on what kind of reimbursement the homeowner wants if they're unable to rent out the property for a time due to a covered claim. The best way to know how much Proper will charge to insure a specific property is to get a quote on its website.

Proper insurance offers the following discounts to policyholders, but they may not be available in all areas:

• Smart home device discount
• Home safety inspection discount

This is a much shorter list than what many traditional home insurers provide. But since Proper occupies such a niche in the industry, it doesn't really need a long list of discounts to draw in new customers.

Building coverage

This pays to repair or rebuild the rental itself if it's damaged due to a covered claim. This protects things like the roof, foundation, and built-in fixtures, like kitchen cabinets.

Personal property coverage

This pays to repair or replace personal items, like furniture, dishes, or electronics, that are damaged or stolen. Proper automatically pays the full replacement cost for covered items rather than the actual cash value.

Sewer and drain backup coverage

Many traditional homeowners insurance companies offer this protection as an optional endorsement, but it comes standard with Proper policies.

Commercial general liability

This coverage protects the homeowner if they're sued by a renter. Homeowners who use their short-term rental as their primary residence receive an additional $1 million in personal liability coverage.

Ordinance and law coverage

This optional protection pays whatever is necessary to upgrade the rental to comply with the latest building codes after a covered claim.

Lost income coverage

Homeowners who opt for this coverage will receive some level of reimbursement for the income they lose during the time they're unable to rent out the property after a claim.

Homeowners interested in Proper insurance can start by getting a quote on the company's website. It only takes about three minutes. Once Proper has gathered the information it needs, it'll give a price estimate, which homeowners can customize to suit their needs. Then, they can purchase the policy.

Proper is a Better Business Bureau (BBB) accredited business and has an A+ rating with that organization. It's also received a number of positive reviews from customers online. But since it's not a typical home insurer, it hasn't featured in large customer satisfaction surveys, like those conducted by J.D. Power. This makes it difficult to compare the quality of its service to its competitors.

Proper could be a good fit for homeowners who:

• Operate one or more short-term rentals
• Rent out their primary home on occasion
• Like the idea of a single policy rather than separate homeowners and landlord policies

But those interested in working with a more traditional insurer may prefer Allstate or Farmers.