I know the topic of umbrella insurance comes up here periodically. I was just out shopping for new auto and umbrella policies, and most insurers won't write a personal umbrella that covers an STR if the underlying policy for the STR is on a commercial form -- which is the case for most good STR policies. I discovered though that Markel *will* write a personal umbrella over a commercial STR policy (plus your personal auto + homeowners). And they also had the best rate for a $2M umbrella with a 16-year-old driver in my household.
Hopefully helpful to others who are out shopping for insurance.
Thanks. In process of looking for new umbrella myself. They increased my annual by $500. When you say commercial STR policy do you mean something like Proper or a STR owned by an LLC?
Hmmm. I have been working on a insurance evaluation for everyone here and I will look at including this info in the post...once I can get ANY insurer to get back to me...
I know the topic of umbrella insurance comes up here periodically. I was just out shopping for new auto and umbrella policies, and most insurers won't write a personal umbrella that covers an STR if the underlying policy for the STR is on a commercial form -- which is the case for most good STR policies. I discovered though that Markel *will* write a personal umbrella over a commercial STR policy (plus your personal auto + homeowners). And they also had the best rate for a $2M umbrella with a 16-year-old driver in my household.
Hopefully helpful to others who are out shopping for insurance.
How much was the umbrella policy if you don't mind sharing?
$1347 annual for a $2M policy covering 3 cars / 3 drivers (one under 21), primary residence, one STR and an old pontoon boat. All the underlying policies have $300K liability limits, except for the STR which has $1M/$2M. I think almost half the cost comes from the teen driver.
A $2M umbrella on top of a $2M STR policy might seem like overkill, but it's a big three-story house with seven bedrooms, max 19 guests. I don't like to think about all the terrible things that could happen, but there's lots of exposure there. A simple scenario is a fire where a bunch of people don't get out.
Thanks. In process of looking for new umbrella myself. They increased my annual by $500. When you say commercial STR policy do you mean something like Proper or a STR owned by an LLC?
Yes, all the STR specialty policies from folks like Proper, Steadily, CBIZ, etc. are typically written on commercial forms, which is what I was referring to. If your STR is in an LLC, I'm not sure Markel's umbrella policy would cover it.
To me it makes more sense to set up the right entity and then just get the right STR coverage. It's much cheaper than tons of different policies that cover everything you own. It's a false sense of security because if the right attorney came along, not only would your insurance be maxed out, but they could still take property and/or income.
I need to finalize my insurance coverage on a new property I am closing on Monday.
1. Why do people use Proper? Is it really that good given the high premium and lack of ability to change many options? My properties are in coastal Florida, I understand expensive coverage but theirs includes a 25% wind deductible.
2. I have a few other quotes for STR coverage that don't look bad but not as fully loaded as Proper and many of the business aspects of a STR. That said, much better options on deductibles, coverage, etc. If you've chosen a Proper insurance over a typical insurance that covers STR with income replacement etc, why?
3. As OP said, hard to find umbrella that will cover STR papered insurance unless I find a carrier that writes it under my name personally and names the LLC as an additional insured (I own my properties under LLCs). I may look into Markel. My agent is saying they can wrap an excess liability around my STR policy to up the liability coverages. I will be comparing cost of this to Proper but has anyone done this instead and why?