STR Insurance Vs Landlords Insurance???

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

Hey @Juan David Maldonado, I think you get the gist of things from my pals here.

Don't rely on a landlord policy, AirBNB AirCover or VRBO's insurance. You MUST have a correct STR policy specific to short term rentals.

Check out Proper (expensive), CBIZ and Foremost (very popular here) to get some quotes.

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  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    1y

    You need a STR specific policy. LTR policies are not designed for commercial use and your claim will be denied once the insurer finds out you were on airbnb/vrbo. Shoot for $1M in liability coverage (at least).

    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    1y

    Agree with Jon.

    With a short-term rental, you are effectively running a hotel, and there are risks with that class of business that are very different than a long-term rental. In addition to $1 million liability, I would recommend that you buy a personal umbrella policy that extends to the rental. Umbrella is very inexpensive insurance.

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

    If you had a claim you could be denied if you didn't have STR insurance and were renting it Short Term.

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

    Hey @Juan David Maldonado, I think you get the gist of things from my pals here.

    Don't rely on a landlord policy, AirBNB AirCover or VRBO's insurance. You MUST have a correct STR policy specific to short term rentals.

    Check out Proper (expensive), CBIZ and Foremost (very popular here) to get some quotes.

    4Reply
    • John UnderwoodPro Member
      Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
      1y
      Quote from @Michael Baum:

      Hey @Juan David Maldonado, I think you get the gist of things from my pals here.

      Don't rely on a landlord policy, AirBNB AirCover or VRBO's insurance. You MUST have a correct STR policy specific to short term rentals.

      Check out Proper (expensive), CBIZ and Foremost (very popular here) to get some quotes.


       Also USAA if you, your parents or your grandparents served in the military. 

      1Reply
    • Account Closed
      Investor · FL · Member since 2016 · 332 posts · 388 votes
      1y
      Quote from @John Underwood:
      Quote from @Michael Baum:

      Hey @Juan David Maldonado, I think you get the gist of things from my pals here.

      Don't rely on a landlord policy, AirBNB AirCover or VRBO's insurance. You MUST have a correct STR policy specific to short term rentals.

      Check out Proper (expensive), CBIZ and Foremost (very popular here) to get some quotes.


       Also USAA if you, your parents or your grandparents served in the military. 

      Do you know what states USAA writes STR policies for? I am only asking as I have over the years spent hours on the phone with them to get quotes till at the end of 45 mins to 1 hr of them entering the information when they say "oh sorry we don't write policies there". It frustrated me so much after trying to get a quote on my own home and it took an hour to get to where they said sorry we are not issuing policies iin your area currently that I had a conference call with the CEO's exec on the issue. This was the old CEO who dragged USAA down in customer service and shed thousands of members. I am a 27yr disappointed and frustrated USAA member.

      0Reply
    • John UnderwoodPro Member
      Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
      1y
      Quote from @Account Closed:
      Quote from @John Underwood:
      Quote from @Michael Baum:

      Hey @Juan David Maldonado, I think you get the gist of things from my pals here.

      Don't rely on a landlord policy, AirBNB AirCover or VRBO's insurance. You MUST have a correct STR policy specific to short term rentals.

      Check out Proper (expensive), CBIZ and Foremost (very popular here) to get some quotes.


       Also USAA if you, your parents or your grandparents served in the military. 

      Do you know what states USAA writes STR policies for? I am only asking as I have over the years spent hours on the phone with them to get quotes till at the end of 45 mins to 1 hr of them entering the information when they say "oh sorry we don't write policies there". It frustrated me so much after trying to get a quote on my own home and it took an hour to get to where they said sorry we are not issuing policies iin your area currently that I had a conference call with the CEO's exec on the issue. This was the old CEO who dragged USAA down in customer service and shed thousands of members. I am a 27yr disappointed and frustrated USAA member.


       SC and TN as I have policies in these states. Beyond that I do not know.

      0Reply
    • Account Closed
      Investor · FL · Member since 2016 · 332 posts · 388 votes
      1y
      Quote from @John Underwood:
      Quote from @Account Closed:
      Quote from @John Underwood:
      Quote from @Michael Baum:

      Hey @Juan David Maldonado, I think you get the gist of things from my pals here.

      Don't rely on a landlord policy, AirBNB AirCover or VRBO's insurance. You MUST have a correct STR policy specific to short term rentals.

      Check out Proper (expensive), CBIZ and Foremost (very popular here) to get some quotes.


       Also USAA if you, your parents or your grandparents served in the military. 

      Do you know what states USAA writes STR policies for? I am only asking as I have over the years spent hours on the phone with them to get quotes till at the end of 45 mins to 1 hr of them entering the information when they say "oh sorry we don't write policies there". It frustrated me so much after trying to get a quote on my own home and it took an hour to get to where they said sorry we are not issuing policies iin your area currently that I had a conference call with the CEO's exec on the issue. This was the old CEO who dragged USAA down in customer service and shed thousands of members. I am a 27yr disappointed and frustrated USAA member.


       SC and TN as I have policies in these states. Beyond that I do not know.


      Thanks for letting me know as of a couple years ago they were not issuing STR policies in Sevier County. I will see if I can get quotes from them. Unfortunately after 25 yrs I moved my auto from them as State Farm and Progressive are 40% less. I am surrounded by five military bases with about 30k AD/Guard/Reserve personnel and 200k retirees/vets.

      0Reply
    • John UnderwoodPro Member
      Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
      1y
      Quote from @Account Closed:
      Quote from @John Underwood:
      Quote from @Account Closed:
      Quote from @John Underwood:
      Quote from @Michael Baum:

      Hey @Juan David Maldonado, I think you get the gist of things from my pals here.

      Don't rely on a landlord policy, AirBNB AirCover or VRBO's insurance. You MUST have a correct STR policy specific to short term rentals.

      Check out Proper (expensive), CBIZ and Foremost (very popular here) to get some quotes.


       Also USAA if you, your parents or your grandparents served in the military. 

      Do you know what states USAA writes STR policies for? I am only asking as I have over the years spent hours on the phone with them to get quotes till at the end of 45 mins to 1 hr of them entering the information when they say "oh sorry we don't write policies there". It frustrated me so much after trying to get a quote on my own home and it took an hour to get to where they said sorry we are not issuing policies iin your area currently that I had a conference call with the CEO's exec on the issue. This was the old CEO who dragged USAA down in customer service and shed thousands of members. I am a 27yr disappointed and frustrated USAA member.


       SC and TN as I have policies in these states. Beyond that I do not know.


      Thanks for letting me know as of a couple years ago they were not issuing STR policies in Sevier County. I will see if I can get quotes from them. Unfortunately after 25 yrs I moved my auto from them as State Farm and Progressive are 40% less. I am surrounded by five military bases with about 30k AD/Guard/Reserve personnel and 200k retirees/vets.

      We saved about 3k on our insurance in Sevierville for our 6BR cabin. 

      0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    I've learned a lot as my wife just got licensed in FL :) 

    Both are DP3 insurance that are comprehensive risk for investment (rental) property. The difference will lay in the rental period covered, which is usually a question when you are quoting the policy. If you are STR you want a minimum rental period of 1 night, with LTR you may have 6,9, 12 months etc. The shorter the rental term the more pricy the policy.

    Both examples above (DP3) are property insurance options, there are also products called various things that protect the contents of the home from guest damages etc.

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  • Jared Townsend
    Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
    1y

    For most STR its really just a matter of eligibility. Like @Andrew Steffens said, most STRs are written on a DP3 policy form that allows for STR usage and increased contents coverage. You just have to be careful with your minimum night stay as many insurers have a minimum of 2 or 3 nights (otherwise they consider it a hotel). 

    Also be extra careful if you're offering additional amenities that increase your liability risk off property like golf carts, canoes, bikes, etc. as many DP3 policies limit liability to the premise only. You may need a commercial liability policy or a product like Proper to extend liability coverage off-premise. 

    0Reply
  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    1y

    @Juan David Maldonado

    You definitely need to let your carrier know if you alter the currently insured use of the property. STR policies typically do carry a bit more cost, but nothing too crazy from what I've seen. The last thing you want to have happen is be improperly insured and need to file a claim. The carrier may re-assess and have you pay back premiums or deny the claim all together... better safe than sorry.

    Cheers!

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    1Reply
  • Andrew Street
    Member since 2019 · 1k+ posts · 292 votes
    1y

    You'll need STR insurance. Standard landlord policies usually don't cover short-term rental activity or guest liability, so it's best to get a policy designed for STRs to make sure you're fully protected.

    0Reply
  • Andrew Street
    Member since 2019 · 1k+ posts · 292 votes
    1y

    You'll need STR insurance. Standard landlord policies usually don't cover short-term rental activity or guest liability, so it's best to get a policy designed for STRs to make sure you're fully protected.

    0Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Foremost Insurance

    0Reply
  • Pete Slaga
    Rental Property Investor · California, CA · Member since 2015 · 41 posts · 28 votes
    1y
    Quote from @Juan David Maldonado:

    I possibly may turn my rental into a STR as an option. If I have landlords Insurance on the property do I need STR Insurance specifically?

    You need to have insurance that will allow for STRs.  Otherwise you are running the risk of being denied an insurance claim.

     This list is about a year old.   Hopefully this will help.

    1. Proper Insurance: Offers comprehensive coverage specifically tailored for short-term rentals, including replacement cost coverage and robust liability protection.
    2. Allstate: Offers HostAdvantage, a home-sharing insurance program designed to supplement existing homeowners policies for short-term rentals.
    3. CBIZ: Specializes in vacation rental insurance with wide-ranging coverage, particularly suitable for homes with additional amenities.
    4. Foremost Insurance: Known for its comprehensive vacation rental insurance policies, making it a top choice for many property owners.
    5. Obie: Stands out for its focus on short-term rentals, offering tailored policies for this specific market.
    6. Steadily: Provides vacation rental property insurance that can be customized to fit the unique needs of short-term rental owners.
    7. RentalGuardian: Offers specialized short-term rental insurance products, including options for both property and liability coverage.

    InsuraGuest: Provides technology-driven insurance solutions specifically designed for the hospitality industry, including vacation rentals.

    0Reply
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