Vacation Rental Insurance
TripVacationRental offers “free” short-term rental insurance for every booking on their platform. They have the TVR Host Guarantee which provides $100,000 of “free” property coverage and the TVR Host Protection which provides $100,000 of “free” liability coverage.
The TVR Host Guarantee is not actual insurance and TVR is quick to point that out in their marketing material. If they didn’t, we imagine they would get a lot of letters from insurance commissioners across the U.S., as insurance is a highly regulated industry. Yes, there is documentation of TVR stepping up and paying some property claims, but let’s be honest, if your home burns down, TVR is not rebuilding it. It’s your short-term rental property and you need to insure it like any other property you own.
The TVR Host Protection is an actually commercial liability insurance policy. However, TVR is the named insured and it’s entirely up to them on who gets coverage. The most alarming part is that the policy only has a $100,000 aggregate for the year, which means the most the policy is maxed out after $100,000 is paid in claims. That would only be 10 $100,000 claim pay-outs. With 80,000 bookings per year around the world and actuarial data on liability claims, the math does not add up.
Something has to give and it comes in the form of exclusions or limitations in the policy. TVR’s short-term rental insurance clearly excludes personal and advertising injury, assault and battery and much more. Yes, it’s there as an added layer of protection for certain occurrences.
Lloyd’s of London is considered the world’s most prestigious insurance market, best known for specializing in emerging, or unusual risks. The Lloyd’s market is comprised of 80 syndicates that interact with thousands of brokers daily, to create business and personal insurance solutions in over 200 countries.
Lloyd’s success has been built on its character for paying all valid claims. In over 300 years, Lloyd’s has never gone insolvent and continues to maintain an A+ Rating on Standard & Poor's. Lloyd’s insures the majority of FTSE 100 and Dow Jones Industrial Average companies.
Much like homeowner’s insurance, the Proper/Lloyd’s policy provides coverage for the building and contents or personal property. Proper automatically enhances the coverage form to special all-risk, and includes replacement cost valuation. It’s superior in every aspect.
- Special form coverage (all risk)
- Replacement cost valuation on building and contents (new for old)
- No limit on damage caused by a renter
- Vacancy clause removed
- No limit on theft
- Back-up sewers and drains
- Loss assessment
- Debris removal
- Unscheduled structures
- Full ordinance or law (optional)
- Bed bug extermination & lost income (optional)
In the event of a covered insurance loss, i.e. fire damage, most vacation rental property owners are unable to rent their property for a certain amount of time. Business income coverage would pay you for the lost revenue, up to the limit you choose while your property is being repaired.
- Actual loss sustained
- No time limit
With the explosive growth of vacation rentals, cities, counties, HOA’s, and even some states are passing laws and ordinances with relation to short-term rentals (STR’s). The common thread is that a STR is a business no different than Hilton, and hospitality and insurance laws should apply. Because the Proper Insurance® policy is a business policy, and carries commercial general liability, it is in compliance. All vacation rental property owners need commercial insurance.
- Suffices for all STR proof of insurance requirements
- Liability extends beyond the premise
- Enhanced for animal, liquor liability, and invasion of privacy
- Includes advertising injury
- No limitations on assault, battery, or molestation
- Continues over amenities such as bicycles, golf carts, hot tubs, pools, fishing, rec areas, small watercraft, + more
- Additional $100,000 in personal liability when rental “doubles” as primary residence