Insurance Setup for Duplex: Owner Occupied + Airbnb, and Long-term Tenant

[Savannah Enright]

I recently transferred my dual-use property into an LLC for liability protection. I have two units on the property, one has a long-term tenant, and one is my primary place, but I do ST rentals (Airbnb) as I travel a lot.

My insurer, State Farm, told me I need commercial "Rental Dwelling" coverage now instead of homeowners. The cost is only about $150 dollars more, for significantly less coverage on the property, and the coverage gaps that don't make sense for my situation. I am wondering how others manage.

• 1. Loss of Rents coverage - This policy only covers the permanent tenant, NOT ST rentals
• 2. Personal Property coverage - is too low for business assets, 21K, and I'm being told I need renters insurance for my own property.
• 3. Renters Insurance - Agent says get renters insurance, which seems designed for actual tenants, not owner-operators. Someone else told me "Standard renters policies have an exclusion for property you own a financial interest in." I am looking into this, but if that is true then rental coverage would be useless.

How are you insuring your properties, especially if you own them via business structure + mix short-term rentals with other income/personal use? Any recs for policy types or carriers that work well for this setup?

[John Underwood]

I would go with what your insurance company says is needed in order for them to insure you.

Now that your in an LLC, you must follow stringent rules or the LLC will be of no value. Make sure you know these rules and follow them to the letter. Just being in an LLC doesn't necessarily protect you like some people assume.