Seeking guidance - STR insurance for property vs operations

[Brian Crumrine]

Hi,

We run a two-unit STR here in Portland. Two LLCs are involved - one owns the real estate (and another unrelated LTR property) and the other LLC operates the STR business. The STR business LLC leases to the real estate LLC. It might be overkill but we were advised to go this route by lawyers and have kept this arrangement (I'm curious if any others do this but that's not my main question now).

We currently have two insurance policies - one for the LLC that owns the property and another for the LLC that operates the STR business. I've worked with our insurance broker to ensure that each policy covers the correct risks. A lawyer we worked with years ago recommended two separate insurance policies.

I've got a quote in hand from an insurance company that specializes in STR insurance. They claim that their one policy would cover both LLC's risks. The cost for their policy is essentially the same as the cost of the sum of the two existing policies.

Question - does anyone have experience with a similar situation and if so how do you insure your properties/LLCs?

Thanks!

[Mike Grudzien]

Wow!  Complex situation and above my pay grade!