PROP Coverage

Property Insurance Requirements for Hotels & Hospitality Properties

Covers damage to tenant-owned improvements, inventory, and business personal property within leased spaces. Here's what property managers need to know about property insurance coverage for hotels & hospitality properties.

Why Property Insurance Matters for Hotels & Hospitality Properties

Tenants need property coverage for their own buildouts and inventory. Without it, tenants may seek recovery from the landlord after a loss event.

Typical Minimum Limits

Replacement cost of tenant improvements

About Hotels & Hospitality Properties

Hotels, motels, resorts, and extended-stay properties with complex vendor relationships.

Common Vendors

  • linen services
  • food suppliers
  • valet parking
  • AV equipment providers

Common Tenants

  • restaurant operators
  • spa operators
  • gift shop tenants
  • event planners

Property Insurance Compliance Checklist for Hospitality Property Managers

1

Require all vendors and tenants to provide a certificate of insurance showing active property insurance coverage before they begin work or occupy space.

2

Verify that the PROP policy lists your property or management company as an Additional Insured (where applicable).

3

Confirm coverage limits meet or exceed your minimum requirements (typically Replacement cost of tenant improvements).

4

Set up expiration tracking to receive alerts 30, 60, and 90 days before policies lapse.

5

Automate follow-up notifications so non-compliant vendors and tenants receive reminders without manual effort.

6

Maintain an auditable compliance history for each vendor and tenant in case of claims or disputes.

How SmartCOI Automates Property Insurance Tracking

SmartCOI eliminates manual COI tracking for hotels & hospitality properties. Upload certificates, and our AI instantly extracts property insurance details — coverage limits, effective dates, additional insureds, and more. Non-compliant vendors and tenants are flagged automatically, and follow-up emails go out without you lifting a finger.

AI Extraction

Upload a COI and SmartCOI extracts PROP limits, dates, and named insureds in seconds.

Compliance Engine

Set your property insurance requirements once. SmartCOI checks every certificate against them automatically.

Auto Follow-Up

Non-compliant or expiring policies trigger automatic email reminders to vendors and tenants.

Stop chasing COIs. Start tracking compliance.

SmartCOI automates property insurance tracking for hotels & hospitality properties — from upload to compliance verification to renewal reminders. Try it free.

Upload 50 COIs Free

Related Resources

Other Insurance Requirements for Hotels & Hospitality Properties

Property Insurance for Other Property Types