My wife and I are in the process of closing on a vacation home in the Davenport area. We plan to rent it out, as an STR, while we are not there. This will be our first vacation and STR home.
We need to determine the right insurance, and fast. Please keep in mind, since this is a vacation home, it will not be covered under the protections of an LLC (at least not initially) so we need to make sure we have liabilities covered.
How do you structure your insurance? Do you have one plan or a plan with supplementals such as liability?
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y
You really don't need that LLC until you pay off the property and it's questionable if you need it then as long as you maintain your property and have correct insurance.
Yes to wind insurance, not sure about hurricane.
I use Foremost STR policy for one property.
I am about to switch to USAA (retired Navy) for another because they quoted a policy that was 3k lower than what we have.
Investor · Atlanta · Member since 2022 · 146 posts · 72 votes
1y
Hi Aaron, Congrats on your new vacation home! For STR insurance, I recommend using a specialized policy for rentals like Proper Insurance, Foremost, or Kin Insurance. These companies provide liability and property coverage specifically for STRs, and some even offer guest damage protection.
As for wind and hurricane coverage, it's crucial in Florida, especially in areas like Orlando. Wind damage can still occur, even if hurricanes aren't as severe inland. I suggest speaking with an STR-specific broker, such as Fudge Insurance, to tailor your coverage to your needs.
My wife and I are in the process of closing on a vacation home in the Davenport area. We plan to rent it out, as an STR, while we are not there. This will be our first vacation and STR home.
We need to determine the right insurance, and fast. Please keep in mind, since this is a vacation home, it will not be covered under the protections of an LLC (at least not initially) so we need to make sure we have liabilities covered.
How do you structure your insurance? Do you have one plan or a plan with supplementals such as liability?
Also, is wind and hurricane a must?
Thanks in advance,
Aaron
@Aaron Washington, we have a fantastic insurance broker, based here in Kissimmee who is very familiar with the STR market and can quickly get you a number of appropriate quotes (the well known and lesser known companies) DM me your email and I will intro you.