Homeowners Get $10,000 to Fight Squatters Under New Policy

An insurance company is now offering thousands of dollars to compensate short-term rental owners who have to pay out to deal with squatting issues at their homes.

Proper Insurance, which operates across the country, announced that it will offer as part of its squatter insurance policy up to $10,000 of expenses to evict an illegal occupier, including court costs and other fees, for an annual premium of less than $100.

Its policy, which has no deductible, will also provide up to $20,000 for business revenue lost while dealing with illegal occupiers.

Squatting has emerged as an issue after highly publicized incidents of individuals taking over properties whose owners say they have no legal right to live there. Experts have warned that cases of actual squatting are rare and in certain instances landlords have used the term to attempt to deny tenants legal rights over homes.

Proper Insurance is focused specifically on homeowners who are in the business of short-term renting.

Darren Pettyjohn, Co-Founder of Proper Insurance, said in a statement: “Proper Insurance consistently leads the industry by addressing the evolving needs of short-term rental owners. Our expanded squatters coverage reflects our dedication to providing the best and most comprehensive protection available on the market.”

A spokesperson told Newsweek that the price range for squatters coverage is less than $100 a year.

“Proper Insurance’s one of kind Squatters Coverage is a static rate meaning there is no adjusted premium based on location. It is a fixed rate for all 50 states and the District of Columbia,” the spokesperson said. “This is an optional coverage that can be added or removed at the request of a client. All of our quotes are sent with it included and only removed at the request of the insured.”

In the event of a squatter, Proper Insurance advises the owner or host to promptly file for an unlawful detainer, initiate the eviction process, maintain comprehensive documentation with the squatter, and contact their insurance provider immediately.” the company said in a statement. “This documentation is essential, as the legal process can vary significantly depending on the state and local jurisdiction.”

It is believed by this author that anyone claiming on the policy will likely need proof that they have taken recommended steps to deal with squatters.

The company noted that the short-term rental business has been grappling with incidents of squatting.

“Squatters often find loopholes in a rental agreement, breaking-and-entering a property, or refusing to leave after the booking period has ended at a short-term rental,” Proper said in its statement.

Dealing with a squatter can hurt short-term rental homeowners if the issue find itself embroiled in litigation, Proper suggested. The move to offer additional coverage is geared toward supporting homeowners who find themselves in such conundrums.

“A squatter scenario can be especially devastating for short-term rental hosts, who rely on a steady stream of bookings and income to maintain their properties and businesses,” Proper said in its statement.

The no deductible means there is no sum a policy holder must pay from their own funds to deal with a squatter before the insurance plan begins to cover the costs.