STR Insurance - what is best?

Question

My husband and I just had our offer accepted for our first STR.  We currently have one LTR.  As I am researching insurance for STR, is it better to go with Proper Insurance, who claim to be the only STR out there (I have not reason to doubt that claim), or is the standard Rental Dwelling coverage from any number of companies enough.  The quote difference is double.  I am not unwilling to pay the extra if those with experience believe it to be prudent.  I plan to list property through Airbnb, which offers some coverage as well.

Bruce Woodruff · Answer

Proper may be the 'only' STR Insurance only company out there , but they are not the only company that offers insurance for STRs. Ask your current homeowner's carrier, but make sure you tell them specifically that you are intending to operate a vacation rental. I even threw in the term 'AIRbnb type property' to make sure they understood. Some of the larger carriers do indeed offer insurance for STRs and their prices are substantially lower as you noted. Ask around, just make sure you disclose your actual intent for the property.

Susan Barlow · Answer

That is the way I am leaning.  @Jason Bott thank you for your input.

Jason Bott · Answer

@Susan Barlow to give an insurance brokers perspective, Proper does have the broadest coverage for STRs. With that said, there are several companies out there that will do STR, but they can not offer some of those special coverages Proper does.

You need to determine if those extra coverages are worth the extra premium.  Each investor is unique.  Paying $1,000 in extra premiums to cover $5k-$10k in claims may not be worth it.

Lastly, with 1 STR, you should be able to find a decent option from your Home and auto company.

Bruce Woodruff · Answer

As long as you make sure they know it is for a STR. They have great coverage for reasonable $$, And no, I do not work for them :-)

Susan Barlow · Answer

Thanks @Bruce Woodruff.  That is who my second quote is from.  I agree State Farm has always been good to my family and I am leaning toward just getting coverage with them and just increasing the liability coverage .

Bruce Woodruff · Answer

@Susan Barlow Give State Farm a call. Coverage may differ in different areas, but they are very good here.

Susan Barlow · Answer

That's odd.  I just got a quote from them end of last week. They are working hard to sell me on their coverage (which makes me more hesitant).

Barbara Chaney · Answer

Just tried to get a quote from Proper and they said they're not writing any more policies for 2021. I'm trying with a few others including Fudge Insurance and Kin.

STR Insurance - what is best?

Most Popular Reply