Southern Colorado Insurance Center Blog

All You Ever Wanted to Know About Insurance

Protect Your Vacation Rental Business

Southern Colorado Insurance Center offers an all inclusive insurance that replaces your homeowner’s policy. Custom-penned for the unique risks of vacation rental and/or short-term rental properties.

  • Commercial Package Policy: coverage for building(s), contents, liability, and income
  • Building(s): special cause of loss with replacement cost valuation
  • Contents: special cause of loss with replacement cost valuation
  • Liability: $1,000,000/$2,000,000 in commercial general liability
  • Income: actual loss sustained business income coverage with no time limit
  • Liability coverage continued to amenities: swimming pools, hot tubs, watercraft, bicycles, docks, rec areas, + much more
  • Enhancement coverage: theft, damage to your rental caused by a guest, animal/pet liability + more
  • No standard occupancy restrictions; designed for short-term rentals
  • Underwritten by Lloyds of London, AM Best’s A

Review our sample vacation rental checkout checklist.

Frequently Asked Questions 

What is considered short-term renting? 

In the insurance world, a property that is rented for less than 30 days at a time is typically considered short-term. A property in which the renter does not reside/live at the dwelling.

Why does my homeowner's policy not cover my short-term rental? 

All homeowner's policies carry a "business activity exclusion". In other words, any claim involving a "business activity" could rightfully be denied.

Is my short-term rental really a business? 

Yes. More and more cities like Austin, Santa Barbara, and Chicago are now requiring short-term rental owners to carry and pay for a business license. Note: Starting Feb 2015 in San Francisco Airbnb Hosts will be required to pay 14% hotel tax and carry $500,000 in liability coverage.

How do I get covered for business activity? 

You buy a business insurance policy. The Proper Insurance policy is a business policy. It covers your business property (rental home/contents), business liability, and the business income it generates.

If I insure my short-term rental as a business, can I also stay there? 

Yes. There are no standard occupancy restrictions on a business policy. This means the property is insured while you stay there, friends or family, and of course paying guests. 

My short-term rental is also my primary residence, can I still purchase the Proper Policy? 

Yes. If the short-term rental home is also your primary residence, Proper simply adds $1,000,000 in personal liability and $50,000 in loss of use to relocate in the event the property is being rebuilt. This is very important if you do not carry a homeowner's policy elsewhere.

What if I also live at the short-term rental, can I still purchase the Proper policy? 

Yes. You have the same business exposure. We see every scenario imaginable. You live upstairs and short-term rent the downstairs. You live in the main home and rent out the guest house, etc.

If I have the Proper policy do I keep my homeowner's or landlord policy in place? 

No. The Proper policy is designed to fully replace the current coverage you have. You would cancel your current policy. 


Discussion

There are no comments yet.


Leave a Comment

Required fields are marked with

Comment

Your name, comment, and URL will appear on this page after it has been reviewed and approved. Your email address will not be published.