Insurance for Short Term Rentals

Newark, New Jersey
Short-Term & Vacation Rental Discussions
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Insurance for Short Term Rentals

Claude Florvil
Member since 2020 路 5 posts 路 4 votes

Hello, I have a 2 unit property and would like to use one of the units for short term rentals. I understand that I may have to use a commercial coverage or landlord/dwelling coverage insurance plan. But commercial coverage is more comprehensive for short term rentals. WIll it also cover the unit where I have a long term tenant? Or do I need two (2) insurances? Please let me know your thoughts? Thank you!

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Jason BottPro Member
Insurance Agent 路 Nationwide 路 Member since 2014 路 2k+ posts 路 1k+ votes
3y
Quote from @Claude Florvil:

Hello, I have a 2 unit property and would like to use one of the units for short term rentals. I understand that I may have to use a commercial coverage or landlord/dwelling coverage insurance plan. But commercial coverage is more comprehensive for short term rentals. WIll it also cover the unit where I have a long term tenant? Or do I need two (2) insurances? Please let me know your thoughts? Thank you!

If both units are in the same building and situated on the same parcel of land, they will need to be insured with a single insurance carrier. This insurance carrier would then add an endorsement on the second unit to cover the exposures of the Short-Term Rental (STR).


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  • Sarah KensingerPro Member
    Real Estate Consultant 路 OH 路 Member since 2023 路 2k+ posts 路 1k+ votes
    3y

    You would probably need to two insurance policies and maybe even two companies. You could check local insurance companies to see if they could help you. Otherwise, Proper and Steadily are great STR insurance companies!

    [email protected]330-557-3021
    2Reply
  • Jesse Turner
    Insurance Agent 路 Gainesville, GA 路 Member since 2023 路 99 posts 路 89 votes
    3y
    Quote from @Sarah Kensinger:

    You would probably need to two insurance policies and maybe even two companies. You could check local insurance companies to see if they could help you. Otherwise, Proper and Steadily are great STR insurance companies!


     I agree. There are insurance companies that specialize in homes that are rented. The policies are also distinct for long-term versus short-term rental properties.

    It is worth checking with your original insurer to see what kind of policy would be needed overall (both units). Make sure you are comparing apples to apples when you get quotes from other insurers, too. Ask them if they will insure just one unit, the interior only, or the structure itself.

    1Reply
  • Collin HaysBusiness Member
    Property Manager 路 Gatlinburg, TN 路 Member since 2020 路 3k+ posts 路 4k+ votes
    3y
    Quote from @Sarah Kensinger:

    You would probably need to two insurance policies and maybe even two companies. You could check local insurance companies to see if they could help you. Otherwise, Proper and Steadily are great STR insurance companies!


     are you ready for me to step in?   ;)

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant 路 OH 路 Member since 2023 路 2k+ posts 路 1k+ votes
    3y
    Quote from @Collin Hays:
    Quote from @Sarah Kensinger:

    You would probably need to two insurance policies and maybe even two companies. You could check local insurance companies to see if they could help you. Otherwise, Proper and Steadily are great STR insurance companies!


     are you ready for me to step in?   ;)

    No, I'm tired of it...pick something new. ;p

    [email protected]330-557-3021
    0Reply
  • Michael BaumPro Member
    Olympia, WA 路 Member since 2016 路 8k+ posts 路 7k+ votes
    3y

    Everyone covered it. I would go with 2 polices, but check with each insurer to see what they offer and how they would work it.

    1Reply
  • Collin HaysBusiness Member
    Property Manager 路 Gatlinburg, TN 路 Member since 2020 路 3k+ posts 路 4k+ votes
    3y
    Quote from @Sarah Kensinger:
    Quote from @Collin Hays:
    Quote from @Sarah Kensinger:

    You would probably need to two insurance policies and maybe even two companies. You could check local insurance companies to see if they could help you. Otherwise, Proper and Steadily are great STR insurance companies!


     are you ready for me to step in?   ;)

    No, I'm tired of it...pick something new. ;p


     Well heck. Maybe let鈥檚 debate whether it鈥檚 better to kill it or crush it?  馃憖馃槀

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Jason BottPro Member
    Insurance Agent 路 Nationwide 路 Member since 2014 路 2k+ posts 路 1k+ votes
    3y
    Quote from @Claude Florvil:

    Hello, I have a 2 unit property and would like to use one of the units for short term rentals. I understand that I may have to use a commercial coverage or landlord/dwelling coverage insurance plan. But commercial coverage is more comprehensive for short term rentals. WIll it also cover the unit where I have a long term tenant? Or do I need two (2) insurances? Please let me know your thoughts? Thank you!

    If both units are in the same building and situated on the same parcel of land, they will need to be insured with a single insurance carrier. This insurance carrier would then add an endorsement on the second unit to cover the exposures of the Short-Term Rental (STR).


    3Reply
  • Claude Florvil
    OP
    Member since 2020 路 5 posts 路 4 votes
    3y

    That makes a lot of sense. I would be surprised to hear that policies were so rigid. Thank you and everyone else for your input!

    0Reply
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