STR Insurance Needed- Beach Condo

[Nathan Furlow]

Hey all. I have several long-term rentals but now wanting to diversify my portfolio a bit with adding a short term rental. This is definitely a first- to get condo insurance as well as a policy for short term rental.

I am getting a bit of mixed feedback on what coverage is needed,  if flood insurance is suggested or not (on 5th floor) , liability limits suggested for protection. For example, from my research seasonal/secondary doesn’t provide the protection needed but they are saying that it is. I’m no expert so it would be helpful to get a full listing of suggestions and limits on a $350k 3b/2ba.

also looking for any referrals in area. Thank you!

[Michael Baum]

Hey @Nathan Furlow, so you will want a real live STR policy for sure. Proper, Foremost, CBIZ and others offer that. I would check with your current provider and see if they offer a policy.

Regarding the flood insurance, I would be interested to know if it is considered flooding if you incur water damage on the 5th floor due to weather. Like if a hurricane comes in and shatters some windows and water gets in. Or if the storm surge is massive enough to knock that condo building off it's foundation requiring demolition.

Now that damage probably wouldn't be as extensive if it was actually flooding in from a river or the ocean but it could be extensive. I would ask the provider if what is covered in a scenario like that.