STR Insurance Policy Limits

[Alex Banyasz]

I am working on getting quotes right now and hoping to get some feedback and what is a must. How much for personal property and loss of income? How much for liability?

Basically, I don't want to just get the bare minimum I need for lender, but.I actually want to get something worthwhile if things go wrong

[Theresa Holl]

My guy Ian Karanja is really good. Check out Onyx Insurance Brokers. I can connect you. 

[Alex Banyasz]

@Theresa Holl sure can't hurt

[John Underwood]

How much is your personal property worth?

What's your expected income that you could lose if the house couldn't be rented for a period of time?

[Sarah Kensinger]

Most city/county regulations want no less than 1 million in liability, so we require that for any clients. Personal property should be what the furnishings are worth, and I would do around 6-9 months for loss of income. In many ways I think the last two items are more personal preference. 

[Alex Banyasz]

We are buying this completely furnished, so I'm trying to get a ballpark $ amount from the sellers. My guess would be 50K including furniture, appliances, etc...

Rental income was ~85K last year. Most of the quotes I've been getting here are 30-35K for loss of income.

Honestly my biggest concern is liability. Best quote I've gotten is up to 500K, but I've heard $1M should be the minimum.

Smaller concern of mine - bedbugs.

You seem to be the resident expert on the subject matter - drop some knowledge on me!

[Alex Banyasz]

Quote from @Sarah Kensinger:

Most city/county regulations want no less than 1 million in liability, so we require that for any clients. Personal property should be what the furnishings are worth, and I would do around 6-9 months for loss of income. In many ways I think the last two items are more personal preference. 

 No hard and fast requirements, but I'd love to have a milly. May have to go with one of the quotes I received for 500K and bridge the gap elsewhere.

[Michael Baum]

Hey @Alex Banyasz, we have 50k in lost revenue as part of our insurance.

We recently upped our replacement value to $400/sqft.

Liability is 1m with a 5m umbrella on top of all that.

150k in property loss.

We use Proper. Plus you will need wind if I am not mistaken

@Andrew Steffens is in that neck of the woods and might have some insurance notes.

[Alex Banyasz]

Quote from @Michael Baum:

Hey @Alex Banyasz, we have 50k in lost revenue as part of our insurance.

We recently upped our replacement value to $400/sqft.

Liability is 1m with a 5m umbrella on top of all that.

150k in property loss.

We use Proper. Plus you will need wind if I am not mistaken

@Andrew Steffens is in that neck of the woods and might have some insurance notes.

Exactly what I was looking for. Thank you!

[Sarah Kensinger]

Quote from @Alex Banyasz:

Quote from @Sarah Kensinger:

Most city/county regulations want no less than 1 million in liability, so we require that for any clients. Personal property should be what the furnishings are worth, and I would do around 6-9 months for loss of income. In many ways I think the last two items are more personal preference. 

 No hard and fast requirements, but I'd love to have a milly. May have to go with one of the quotes I received for 500K and bridge the gap elsewhere.

Wouldn't be hard to hit a million with Proper insurance at all! At this time, I believe they are accepting new properties in FL, but the rate may be high. You shouldn't need any umbrella insurance with Proper since they offer everything in one, but you have the option to up the liability as well. 

[Alex Banyasz]

Quote from @Sarah Kensinger:

Quote from @Alex Banyasz:

Quote from @Sarah Kensinger:

Most city/county regulations want no less than 1 million in liability, so we require that for any clients. Personal property should be what the furnishings are worth, and I would do around 6-9 months for loss of income. In many ways I think the last two items are more personal preference. 

 No hard and fast requirements, but I'd love to have a milly. May have to go with one of the quotes I received for 500K and bridge the gap elsewhere.

Wouldn't be hard to hit a million with Proper insurance at all! At this time, I believe they are accepting new properties in FL, but the rate may be high. You shouldn't need any umbrella insurance with Proper since they offer everything in one, but you have the option to up the liability as well. 

 Thank you! I've reached out to them for a quote. I have a quote right now that's sitting at about 3K that I'm pretty happy with, but liability is only 500K. They did say they have umbrella policies that can bridge the gap

[Max Smetiouk]

Quote from @Ther@Theresa Holl:

My guy Ian Karanja is really good. Check out Onyx Insurance Brokers. I can connect you. 

 Thank you 

Should be helpful for people just starting out.

Max

[Andrew Steffens]

Hey Alex,

If liability is your concern, likely the policy is coming with $300k or $500k.  You can ask this to be increased to $1M or $2M.  I personally leave it at the minimum and have a $2M Personal Umbrella.  I will send you a DM with my insurance contact.  Best of luck!

[Alex Banyasz]

Quote from @Andrew Steffens:

Hey Alex,

If liability is your concern, likely the policy is coming with $300k or $500k.  You can ask this to be increased to $1M or $2M.  I personally leave it at the minimum and have a $2M Personal Umbrella.  I will send you a DM with my insurance contact.  Best of luck!

 I think that's the move

[James Carlson]

@Alex Banyasz

Like @Sarah Kensinger said, a lot of cities require $1M in liability. That's true with STR rules in Colorado -- Colorado Springs and Denver, most mountain towns, all require $1M.

Calculate the cost to replace your furnishings for personal property coverage. And get at least 6-months worth of lost-income coverage. 

Also, anyone know how the insurance market is in Tampa? I hear about carriers pulling out of high-risk markets. (It's happening here in Colorado.)