Insuring an Airbnb condo?

Question

Hello,

I’m in the process of purchasing a condo in New Hampshire that will be used primarily as a short term rental (Airbnb). My insurance agent is asking for additional occupancy information for underwriting. I expect to use the property for 80% rental and 20% for friends and family.

What insurance coverage do you recommend for this scenario? I don’t want to find myself in a situation where the multiple is 2-3x average insurance costs.

Thank you

Justin

Justin Mavromatis · Answer

@Matt Moylan

Thank you very much for the reply. I can certainly sense the resistance from many of the insurance carries thus far. I was surprised to hear my agent was not familiar with alternative recommendations. I did however come across Prosper to whom I am waiting for a reply. Thank again.

Matt Moylan · Answer

@Justin Mavromatis most insurance companies are still very suspicious of short term rentals.  The best thing you can do is be honest and upfront with your agent.  If they can't help you, then you'll know to go elsewhere.  The worst thing you could do is not tell the true percentages you expect then a claim be up in the air whether you get protection or not.

I have numerous clients who have airbnb's throughout the nation and the premiums often are higher than a regular secondary home/landlord policy.

BUT they have found, as will you, that at least you'll know if/when you have something happen your policy will protect you.

Best of luck!