What are folks using for STR Insurance? And Hot Tub coverage?

Question

I am looking into additional coverage outside of my existing home insurance policy. Are recommendations for a standard umbrella policy, or something else?

I have have recently installed a hot tub and would appreciate guidance on how to make sure I am covered there. Additional agreements, signage, etc. Thank you!

Lauren Kormylo · Answer

A lot of companies that offer homeowner's insurance now offer add-on STR insurance, but it can vary by state, meaning it may not be available everywhere. But it would be worth googling your current company to see if they offer it, and if so, calling them.

Some of the options in STR insurance include the replacement of business income (in case of flood or fire, for instance, where you'd lose a lot of bookings while you repair), bed bug insurance for the treatment of them and lost income, liquor liability, watercraft coverage, and pool and spa coverage. So look at what they cover, some are bare bones, and some are more comprehensive.

Some Short Term Rental insurance providers:

Safely

Proper Insurance (what I have, but expensive)

CBIZ

Truvi

Farmers

Foremost (owned by Farmers)

Obie

Allstate

American Family

Steadily

American Modern

Nationwide

Progressive

Andrew Steffens · Answer

I own STR's in addition to owning a management company.  Some STR's are in my personal name and I have umbrella coverage.  Others are in an LLC where I have a commercial policy with higher liability limits, and they are also under personal umbrella.  I have commercial GL coverage on my management company as well.

As far as signage, I have had some insurance companies require pool depth markers, signage, flotation devices nearby etc.  Ask them if they have any requirements or recommendations.  You are always free to post signs and be proactive.  It will make you look a lot better in the event of injury or worse.  We do also have reservation agreements which state pools and hot tubs are at your own risk.

Jon Martin · Answer

Umbrella coverage is easy to find and always a good idea.

Your existing homeowner insurance, provided that it started out as an owner occupied home, is not sufficient. You need a short term rental policy.

Jules Aton · Answer

Any idea why this requirement?  I have 2 properties and don't plan on using pms. Got this from Safely:

In order to work with Safely, we require that you are set up with an integrated Property Management Software.
Can you please confirm the PMS (or few) that you are looking into using? Here is a complete list of our integrated PMS partners:

Michael Koeplin · Answer

One thing I'd add is to make sure you're asking about more than whether the hot tub is "covered."

I'd want to know whether adding a hot tub changes your premium, liability coverage, business income coverage, or requires any specific safety measures. Some carriers have requirements around locking covers, barriers, inspections, or warning signage, and it's much better to know those before you have a claim than after.

I'd also ask how a guest injury involving the hot tub would be handled under the policy. That's a conversation worth having with your agent before the first guest uses it.

There are some excellent STR-specific carriers out there, but I'd spend just as much time finding an agent who works with STRs regularly as I would choosing the carrier itself.

Marisa Seadler · Answer

Thanks for the responses. Any recommended companies to look into STR specific policies with?

Lauren Kormylo · Answer

You definitely need a policy specifically for short term rentals.  Your homeowner's policy will NOT cover you at all if something happens when a guest is there, and/or the insurance company finds out you're renting out the house. This means if a guest starts a fire or floods a bathroom, falls and gets hurt and sues you, or has a party and destroys the house, you will have zero coverage.   Even a "landlord policy" for long term rentals will not cover STRs.  You will probably need to pay more for hot tub coverage too, make sure you tell them about it.

Owen Rosen · Answer

Do you live in the home part of the time? Is this a pure STR? Do you actually have homeowners insurance or do you mean additional coverage outside of the base policy?

An umbrella provides additional liability coverage (lawsuit protection) IF the underlying insurance is written correctly and is exhausted but we don't have enough information to answer your questions intelligently.

You should speak with a knowledgeable professional.

What are folks using for STR Insurance? And Hot Tub coverage?

What are folks using for STR Insurance? And Hot Tub coverage?

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