Our Proper Insurance policy for rental arbitrage is the most comprehensive short-term rental insurance available, providing the following coverage:

• No limit on damage from a guest to both the structure of the property and the contents inside of it, which includes intentional theft and vandalism.

• A standard of $2M (and up to $10M) in liability coverage per property, which is double the industry standard of $1M. This covers the whole gamut of liability concerns for guests – from slip-and-fall and invasion of privacy to carbon monoxide poisoning, dog bites, and everything in between – as well as all legal fees above and beyond this occurrence limit. The coverage has no deductable and extends beyond the premises. It also covers amenities such as pools, bicycles, small watercraft, golf carts, rec areas etc. Unlike many homeowner’s insurance policies, there is coverage for animal/pet-related, bed bug-related and liquor-related liability.

• No limit on lost rental income resulting from damage or interruption to business operations (with no time limit). If, for example, a water pipe burst that rendered the property unrentable for three months, Verve and the homeowner would be covered for lost rental income.

•Additional $1M in personal liability when rental “doubles” as primary residence for the homeowner or another individual.

We provide homeowners with a certificate of liability insurance (COI) from Proper, showing them (and their Homeowner’s Association, if requested) as an Additional Insured (AI) under our coverage.

No limit on damage to the property’s structure is also included if the homeowner chooses to use Proper as its homeowner’s policy, paid for by Verve, rather than relying on Verve’s arbitrage policy (as above).

Sometimes it is. But homeowner’s policies can have coverage gaps, limitations, and exclusions related to short-term rental activity. Our commercial package policy from Proper is the only solution on the market that provides truly comprehensive coverage for short-term rentals.

This is the broadest form of liability insurance that Verve can purchase. Unlike typical homeowner’s policies, there are no restrictions on commercial use and no requirements regarding how often or how long the property must be occupied to maintain coverage.

Below are some of the most common coverage gaps of other providers:

• Intentional acts by a renter such as vandalism, and contents limits on theft or damage caused by a renter

• Liability exclusions such as liquor, animals/pets, punitive damages, amenities such as a hot tub, and no coverage extension off premise

• No rental income loss, no coverage for an invasion of privacy claim, and personal liability coverage that excludes business activity

• No quadruple use or occupancy of the properties (most rental properties are used for commercial short-term rental use, personal use, are at times unoccupied, and some have guests or tenants for over 30 days)

Our policy covers all of the above, and more.

“Rental arbitrage” occurs when a homeowner leases their property for an extended period to a lessee who re-rents it for shorter periods. The real estate category was brought about by an increasing demand for short-term non-hotel stays, combined with interest from homeowners in entering long-term relationships with professional and reliable corporate lessees like Verve.