Insurance Premiums and Weather Events Impacting Occupancy

[Carrie Zhang]

I'm interested in buying STR properties in the Carolina coasts, including Myrtle Beach and the Outer Banks. I'm curious for those of you who currently own investment properties in those areas:

Are you worried about insurance premiums skyrocketing and potentially being left without property insurance (like some places in Florida)? And are you seeing major weather events impacting occupancy rates? 

What about HO6 condo insurance? I'm reading that some people are getting hit with special assessments by their HOA that increased their insurance by 400+ a month. Are coastal areas still good investments, and what are some ways to help mitigate these cash flow risks that are mostly out of our control (in my opinion)?

Thank you.

[Michael Baum]

Hey @Carrie Zhang. So the best way to avoid assessments is not buy a condo. Every condo will have assessments at sometime.

HO6 condo insurance isn't the product to be used for a STR. You will want a dedicated STR policy which goes farther in protecting your asset and yourself.

The HO6 policy is essentially a home owners policy for condos.