Insurance Variety for STR

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Insurance Variety for STR

Kwanza P.
New to Real Estate · Bay Area California · Member since 2022 · 178 posts · 69 votes

I've heard that I'll need more than just regular home owner's insurance for an STR.

Would love to hear advice on matters of insurance for STR management.

Thanks!
Kwanza

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
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You will need STR coverage. Most get a STR policy with Foremost, Proper or Cbiz.

Some can get a rider that will add STR coverage to their existing policy. Not all carriers offer this option.

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  • Jeff ChisumPro Member
    Lender · All 50 States · Member since 2020 · 248 posts · 142 votes
    1y

    If you are using the second home occupancy loan you will need a homeowners policy with a STR rider.

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1y

    You will need STR coverage. Most get a STR policy with Foremost, Proper or Cbiz.

    Some can get a rider that will add STR coverage to their existing policy. Not all carriers offer this option.

    3Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    1y

    Running a vacation rental is effectively running a hotel. There are different risks associated with this, which is why a homeowners policy won’t work, and if you try it, they may well not pay if you have a claim.  Vacation rental insurance is its own market, and there are several insurers in this space.  Proper is probably the largest national brokerage, but there are others.  CBIZ also brokers this insurance nationally. 

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    2Reply
  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    1y
    Make sure you have good liability insurance on it as well. An umbrella policy is also good protection for those excess injury claims.
    1Reply
    • Kwanza P.
      OP
      New to Real Estate · Bay Area California · Member since 2022 · 178 posts · 69 votes
      1y
      Quote from @Benjamin Aaker:
      Make sure you have good liability insurance on it as well. An umbrella policy is also good protection for those excess injury claims.
      Thanks Benjamin. Excuse my ignorance - would “umbrella” insurance cover everything? Standard home owner’s insurance, STR insurance, and liability ? Would I still need liability if my LLC owns the home ? Kwanza 
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    • Benjamin AakerPro Member
      Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
      1y
      Quote from @Kwanza P.:
      Quote from @Benjamin Aaker:
      Make sure you have good liability insurance on it as well. An umbrella policy is also good protection for those excess injury claims.
      Thanks Benjamin. Excuse my ignorance - would “umbrella” insurance cover everything? Standard home owner’s insurance, STR insurance, and liability ? Would I still need liability if my LLC owns the home ? Kwanza 

      @Alexandra Reeves beat me to it. It is excess liability coverage and pretty inexpensive. I use Auto Owners Insurance. Indeed you do need liability coverage to protect your LLC.

      1Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    I concur on having a liability umbrella policy.

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    All strong answers above. If purely an investment you will an STR policy. In addition to the ones listed above Steadily is a popular option in FL but they write in all 50 states I believee. If you DM me I can provide you contact details for my team.

    If you live in the house part time or have a second home loan you may need an occupancy policy with STR ride.

    Also (at least in FL) the liability limit is $300k, which is underinsured IMO, so a separate umbrella liability policy is also popular.

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    1y

    Hey @Kwanza P., I lots of good answers here and I would follow that advice.

    You need a policy specific to STRs and not just a landlord or homeowners policy.

    You might contact you current insurer and see what they offer. You might get a decent discount by going with them on all the products you buy.

    Last thing you want is to be underinsured or missing coverage altogether when the stuff hits the fan.

    1Reply
  • Alexandra Reeves
    Member since 2024 · 12 posts · 5 votes
    1y

    @Kwanza P. Umbrellas are a layer of extra liability (only liabilty); I personally have an extra Million for anything that could happen for my personal property and rentals including STRs. Having properties in an LLC can help limit what someone can take but the umbrella is what pays for the legal defense and payout. It's not an either/ or; it's an "and". You still need an STR policy for property damage, umbrella doesn't cover that.

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