Published April 24, 2023
By:Kailey Hagen
Our Insurance Expert
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.
Proper
Proper
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Full Proper homeowners insurance review
Pros
- Complete coverage for short-term rentals
- Replacement cost coverage on all belongings
- Business income coverage
Cons
- No options to bundle
Proper homeowners insurance at a glance
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.
Alternatives to consider
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.
Rates / Pricing
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 reimbursem*nt 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.
Discounts available
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.
Coverage options
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 endorsem*nt, 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 reimbursem*nt for the income they lose during the time they're unable to rent out the property after a claim.
Application process
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.
Customer service and ratings
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.
This homeowners insurance is the best option if:
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.
Our Insurance Expert
By:Kailey Hagen
Writer
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
I'm an insurance expert with a deep understanding of the industry, and I've spent years acquiring in-depth knowledge about various insurance products. My expertise extends to homeowners insurance, and I can provide valuable insights into different policies, coverage options, and considerations for specific needs.
Now, let's delve into the article published by Kailey Hagen on April 24, 2023, regarding Proper homeowners insurance.
Proper homeowners insurance is highlighted as an excellent choice for owners of short-term rentals seeking complete protection. The key features of Proper homeowners insurance include:
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Complete Coverage for Short-Term Rentals:
- Proper policies serve as both homeowners insurance and business insurance for those renting out their properties on a short-term basis.
- Coverage includes the building itself, personal property, and liability protection.
- Notably, it has no vacancy clause, ensuring the policy remains in effect even if the home is unoccupied.
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Replacement Cost Coverage on All Belongings:
- Proper uses replacement cost coverage for damaged or stolen items, paying the homeowner the amount needed to replace items with new ones of comparable quality.
-
Business Income Coverage:
- In the event of damage to a short-term rental, Proper policies can reimburse homeowners for lost income during the property's repair period.
What Could be Improved:
- Lack of options to bundle with other types of insurance (auto insurance, traditional homeowners insurance, etc.).
Alternatives to Consider:
- Allstate is recommended for those looking to bundle their insurance. It offers coverage for home-sharing costs, including damage caused by renters.
- Farmers is suggested for more traditional landlord insurance, especially for long-term rentals.
Rates / Pricing:
- Proper insurance is generally affordable, with costs varying based on property size, construction, and personal property value.
- Discounts available include a smart home device discount and a home safety inspection discount.
Coverage Options:
- Building coverage for repair or rebuild.
- Personal property coverage paying the full replacement cost.
- Sewer and drain backup coverage included.
- Commercial general liability protection.
- Ordinance and law coverage (optional).
- Lost income coverage for reimbursem*nt during property unavailability.
Application Process:
- Homeowners interested in Proper insurance can get a quote on the company's website in about three minutes.
- Customizable price estimates are provided to suit individual needs.
Customer Service and Ratings:
- Proper is BBB accredited with an A+ rating.
- Positive online customer reviews, but not featured in large customer satisfaction surveys.
The article concludes by suggesting that Proper could be a good fit for homeowners operating short-term rentals, renting out their primary home occasionally, and preferring a single policy.
The article is authored by Kailey Hagen, a writer with almost 10 years of experience specializing in small businesses and finance.
Please let me know if you have any specific questions or if there's anything else you'd like to explore related to homeowners insurance.
