Submitted by Kim Fitzpatrick, STR Consultant and Host2Host Member. You can find her at STRsource!

Ensuring adequate insurance is in place can be one of the biggest challenges a host will face when getting started and when evaluating their liabilities. The Host2Host community recently learned more about this topic from Nick Massey with charter member, Proper Insurance. Read more below!

If securing the “Proper” insurance for your short-term rental feels like an intimidating task, you are not alone. In last month’s Sponsored Event, Nick Massy from Proper insurance spoke about the good, the bad, and the ugly of insurance. He also offered some great safety advice from Breezeway to keep your property and guests safe and help mitigate any potential lawsuits.

Availability and Coverage Considerations

Proper can insure in all 50 states. Their policy replaces the current home, or landlord policy, providing superior coverage for building(s), contents, liability, and income.

Nick wants STR owners to keep several important insurance-related questions in mind:

• Does coverage exist?

• • Am I covered for what I really need to be covered for?

  • Am I making a decision based on price or coverage?

• Does service come with it?

• • What kind of claims reviews does my insurance carrier have?

Limitations of Liability and Amenities

Some common concerns for STR owners include coverage for bed bugs and liquor liability. Then there are amenities like non-motorized watercraft, golf carts, exercise equipment, bikes, hot tubs, and pools. It is wise to ask your current carrier what coverage you have and to make sure it includes all your amenities. As has recently made the news, Nick mentioned that Proper Insurance has no limitation of liability when recommending activities off-premises, so if your guests get injured in a community pool, or on a hike you guided them to, Proper has you covered. Whew!

Insurance Consultation and Peace of Mind

Friends of Host2Host can receive a free insurance consultation! Proper Insurance will help you understand your current coverage and spot any gaps. Nick encourages you to reach out to Proper at their website and arrange to work with one of the staff to review your current policy. And NOT just the two-page summary, but they’ll critically evaluate the whole 50+ page policy! They will let you know how well covered you are and where you might have gaps. Ideally, that can provide some peace of mind.

Safety Considerations and Saving Opportunities

The second part of the presentation focused on safety and the things you can do to improve your guests' safety at your property to avoid needing to go through insurance at all. Based on standards by Breezeway, which has a certification program, if you qualify for their certification you can save 5% on your Proper Insurance coverage. Having this certification on file has helped hosts defend their properties against lawsuits.

This is not an exhaustive list, but I tried to capture as many safety considerations as I could during the talk:

• Depth markers, Rules, and Safety equipment are present at the pool and no inflatables are provided 

• Smoke detectors are present in all bedrooms and are not over 10 years old 

• Carbon monoxide detectors are onsite and functioning

• Fire extinguishers are adequate for the space and function the way they are supposed to perform

• Continuous handrails are present on all stairs, inside and out

• Deck hangers, lag bolts, and screws are present, ensuring the deck is commercially rated

• Grills must be a minimum of 4 feet from the house

• Make sure you have tempered glass doors 

• Do not use glass patio tables 

• Rugs that aren’t non-slip are a trip hazard and all rugs need to have corners secured so they don’t roll at the corners.
  

Insurance Horror Stories

Nick gave examples of how having safety considerations in place has saved owners significantly and provided examples of how owners have dealt with big challenges that could have been prevented by ensuring the safety of guests at the property.

It was a very worthwhile and thought-provoking presentation and one worth watching on the replay.

If you're interested in contacting Host2Host charter members, Proper Insurance to see how they can help keep you covered, their main line is 1-888-631-6680 and the website is www.proper.insure