Short Term Rental Insurance in Florida
Dewitt, MI · Member since 2016 · 6 posts · 4 votes
Short Term Rental Insurance in Florida
Most Popular Reply
Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votesQuote from @Sarah Kensinger:
Quote from @Collin Hays:
Quote from @Sarah Kensinger:
Quote from @Collin Hays:
Quote from @Sarah Kensinger:
Quote from @Collin Hays:
Quote from @Sarah Kensinger:
Quote from @Collin Hays:
Quote from @Sarah Kensinger:
I'm surprised the question on if Proper is a quality company was even asked. Not only are they a superior company but they offer coverage on things other STR insurance companies do not. There are many companies that are less expensive and do offer STR coverage, but do they cover.... loss of rental income, bed bug infestations, loss of income over a furnace/ac or another major system going out, extended liability for guests off the property, and no limit on damage from guests. It all comes down to what you're willing to pay and feel comfortable with. As well as realizing the old saying is very true...you get what you pay for.
Proper is a broker. I don't think anyone questions whether they are a good brokerage. They are not a STR insurance company, nor are they "covering" anything. All of the loss items you specify are available through a variety of brokerages, because they are all selling the same policies.
I've had this discussion with you before and since you didn't believe me when I said their NOT a brokerage and never have been, I suggested you call the company and get more info. They are not selling the same policies as all the others, since clearly all the others don't cover everything they do. A couple quick phone calls can tell anyone that. Also, when you make a claim, it stays in Proper and you deal directly with them and no one else, that's not the case with a brokerage. They line you up with a company and move on to the next customer. I again urge you to call the company and get more info on who they are, who backs them, and what they do for the STR world.
Proper isn't an insurer. Their policies are insured by a Lloyds of London syndicate, as are most other STR policies.
From the Proper website:
- “Underwritten by Lloyd’s of London, AM Best’s Rated A”
If they were an MGA they would only sell through agents, not to the general public. An agency of any kind is a brokerage.
uncle. 😂
I'm not exactly sure what you taught me. I've spent most of my career in medical, property, and casualty insurance. I have also owned Short Term Rentals since 2005.
A managing general agent (MGA) or a managing general underwriter (MGU) is a specialized type of insurance agent or broker that has been granted underwriting authority by an insurer, and can administer programs and negotiate contracts for an insurer.
An MGA’s functions can include:
- binding coverage
- underwriting and pricing
- settling claims
- appointing retail agents in a certain region
At its core, the MGA manages all or part of the insurance business of an insurer and acts as an insurance agent or broker for the insurer, while working as the intermediary between carriers and agents, and/or insureds.
The MGA is not an insurer. Proper is not an insurer. Neither is Southpoint Risk or CBIZ an insurer. Most of the products that these brokers sell are underwritten by Lloyd's of London. They are essentially a field agent for the insurer, as are most other agencies/brokerages that sell STR policies, meaning they have authority to underwrite, bind coverage, negotiate and settle claims, and appoint retail agents.
27 Replies
- Dewitt, MI · Member since 2016 · 6 posts · 4 votes3y
Quote from @Michael Baum:
I went into my insurance purchase with my eyes wide open on them. I knew they were a broker for Lloyd's. I got several quotes, but back in 2017 when we bought the house, there weren't as many providers as there is now. CBIZ was just weird for me. Foremost wanted my SSN just to quote me and I wasn't going to give them that.Quote from @Collin Hays:
Quote from @Michael Baum:
Hehehe! I just did my sock drawer an hour ago. Really!Yeah I’ll give them a call right after I re-organize my sock drawer.
Well, I guess that means you have time to call Proper and find out what they really are! ;)
Farmers (which was our primary at the time) had a policy but it seemed like a bunch of riders just glued together. Made me nervous. Thus I went with Proper.
From my perspective, it still offers the broadest range of coverage for a STR owner. It is about 25% more expensive than others, but I think it is worth it.
50k for lost revenue, coverage for guests if they get injured away from the house, beach/dock insurance, bedbugs, etc.
Having said that, I think it really behooves the new owner to get quotes from a bunch of insurers. Many mainstream insurers now offer specialized STR coverage. I would get a quote from Proper with the list of all they cover and use that as a baseline for comparison. Then decide what you can live without to save the $$$.We did get a lot of quotes. FYI, Foremost won't insure in Florida. We decided not to go with Proper because there was no wind coverage. Steadily is who we chose. They covered everything we wanted. Thanks to those of you who helped.
- 3yKerry BairdPro MemberRental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
@Seth Schmidtmann, how was the pricing vs others (Proper, specifically)?
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