Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
8y
@Sara Abernethy when I submitted for quotes from both of them, Proper called me in an hour. CBIZ called me in two days. Given the similarities of their policies and prices, there was no question I was going with Proper. I now have three policies through them and they're always very easy to reach and prompt with responses. I have not had to file any claims so can't speak to that side of things. One of the endorsements I recall that Proper has that CBIZ does not is: Proper's coverage includes if you gift alcohol to your guests, or if previous guests left alcohol behind - I believe other policies will not cover liability pertaining to alcohol, but Proper does.
@Tim Schroeder It is important to have a commercial policy that covers your business activities at your short-term rental (which is, of course, hosting guests). Traditional homeowner's and landlord policies DO NOT cover these activities. If a local insurance agent draws up a policy that covers the commercial use of the property, liability, and other things unique to STRs along with standard homeowner's coverage, then you'd just have to weigh the value of their offering vs. a Proper or CBIZ policy. If the policies are comparable, then it's just a matter of your preference and comfort level. But make sure the policies are in fact comparable.
I like going with Proper because I know they're designed to cover STR business activity as well as standard homeowner's coverage (they even cover lost income if you can't rent due to a claim), they've thought through this particular model - which means I don't have to. If I tried to get a tailored policy through a more traditional company, I'd be concerned that I'd simply overlook something important that the insurance agent wouldn't think to write in (such as: I leave a bottle of wine for a guest. They drink it and fall down the stairs. Other insurance says: Oh, you provided alcohol, we didn't write in coverage for that liability! Too bad. Proper says: We thought of that already, no problem, you're covered!)
Insurance is one of those things where I'm not going to try to get fancy and cut corners.
By the way - make sure your umbrella policy covers the commercial activity of your STR. A standard personal umbrella will not.
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
8y
A slightly older thread, but I will say that everyone who comes to our Airbnb classes in Denver and Colorado Springs leans toward Proper Insurance. Their coverage areas are a little stronger and their customer service is top-notch (which might just be the most important thing when it comes to filing a claim).
There is much more to vacation rental insurance than meets the eye and you have to look at each individual situation carefully. You need to be aware of personal and commercial general liability exposure, and you have to make sure liability coverage extends off-premise (if a bike, kayak, or something else is available for the tenant's use). I am not going to speak in general because each property can have different risk, there should be a list of questions that your insurance advisor is reviewing with you or you may need a 2nd opinion.
Investor · Omaha, NE · Member since 2017 · 87 posts · 81 votes
8y
I think it depends on how you have your STR set up.
If you have a conventional landlord mortgage, I would recommend a product like prosper:
It was the same amount as our regular landlord insurance, they provided additional coverage for things like lost income and alcohol issues, and perhaps most importantly they do not look like a “commercial” product to your lender. (Not that I’m recommending lying to your lender, but if you are operating in a bit of the gray area prosper will be more discreet)
If you own the property outright or in your LLCs name, I would definitely look into a local commercial insurance. However, get a list of all the things prosper covers, and make sure the commercial policy addresses those things as well. For example, if your house had storm damages and was unrentable, would you receive compensation for lost income based on your STR history or on long term rental rates?
One other thing to note is that prosper won’t cover your primary residence, even if you use it for Airbnb. I believe that applied to multi families as well, so if you are house hacking you should look at some other options
Specialist · Belgrade Montana · Member since 2018 · 5 posts · 3 votes
8y
I was one of the original agents that launched CBIZ and actually took part in training the owner of Proper. If you have any questions please let me know. I no longer work for CBIZ, but I am appointed with both Proper and CBIZ.
If you have any questions I am happy to try to help. Now that I am an independent agent and work with both personal/commercial/landlord and vacation rental property owners I feel I have a better grip than ever as to WHY you want to purchase one of their products. PS.....Foremost writes vacation rentals too!
Our agency is licensed in CO - AZ - WY - MT - ND - NV - UT - ID - if there is an interest in other states I'm happy to see what it would take to get licensed there. But I'm happy to answer questions from all 50.
Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
8y
My Farmers umbrella insurance covers all my short term vacation rentals and is under $450 a year in total.
1 million liability policy
I also have an HO6 policy for each property which runs approx $800-1100 per year depending on ocean front or non ocean front. HO6 covers everything including loss of use for 6 months.
Why are so many comments saying Personal umbrella insurance doesnt cover STRs? I specifically e-mailed my insurance agent to double check I didnt make an error and she stated everything is fine and theyre Included as STRs
Specialist · Belgrade Montana · Member since 2018 · 5 posts · 3 votes
8y
Mike V. Don't ask your agent - ask them to get it in writing from the underwriter of the actual insurance company. We agents only sell the product and try to set it up based on what the client is telling us is happening. The underwriters of the insurance companies are the ones that know their particular product inside and out.
Better to be safe than sorry and get it from the Underwriter! Then keep it stored somewhere safe!!
Rental Property Investor · FL · Member since 2018 · 12 posts · 6 votes
8y
@Sara Abernethy, I recently switched insurance companies to ensure I was properly covered because as stated regular homeowners insurance doesn't typically cover short term rentals. I looked at both Proper and Cbiz, but ultimately landed on Lexington. From speaking with the insurance agent it's a fairly new product they offer. Prior to deciding on this policy I was leaning towards Proper. The agent I spoke with was referred to me by Proper for a wind only policy. I was able to get wind and the short term rental coverage in one policy through Lexington. If you are still looking for options then feel free to message me and I can give you the agents contact information. Options are always a good thing...
Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
8y
I’m glad I stumbled onto this thread. After my insurance confirmed my short term rentals are covered under my umbrella policy I read the exclusion list and saw that business activities aren’t.
I followed up with her citing this and all the sudden they’re not covered... I’m a little irritated because I was clear on my intent from the beginning and She assured me this was the correct route to go. Needless to say, I’ll be finding a new insurance agent. Unbelievable!
Specialist · Belgrade Montana · Member since 2018 · 5 posts · 3 votes
8y
Mike V. Yep - that's usually what happens when you know the right words to say. I'm sorry she misled you. I hope it wasn't knowingly. Usually I have found that it isn't. They really are led to believe they are selling the right product. If you have any questions please feel free to track me down and I'm happy to help. Knowledge is power - and free in my book. Jamie
Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
7y
I just made the switch to Proper. I've been using a local insurance company but based on what i've read on this thread, it prompted me to actually read my policy and not go off what my agent has told me.
I found multiple discrepancies and when I called her out on them, she didn't have much to say expect 'don't worry you're fine'. Specifically, I was worried about the liability and loss of income use clause. My former policy had a rental addendum for loss of use (business income coverage) but there was a specific clause that if this isn't my primary residence it would not be covered. Kinda defeats the point and when I asked, she just ignored me.
The 1m liability clause had a 'short term rental' addendum but the language was vague at best and I wasn't comfortable it was rock solid in the event I needed it. The commercial policy by Proper seems legit and not vague.
The cost for my original policies were around $1,000 a year per property. Proper came in around $1200 a year, but I opted to raise a few coverages so its a little more. All in all it was a no brainer to get a ton more coverage and the premium increase wasn't crazy.
Specialist · Belgrade Montana · Member since 2018 · 5 posts · 3 votes
7y
Can you describe more on the layout of the multi-family property? For example, are there any shared areas (entrance/exit, hallways, kitchen, bathrooms) – or are they separated and locked units?
If it were a triplex with three individual units with their own entrance/exit, then Proper's underwriting guidelines require more than half of the building to be used as a STR. In this case, they would need two of the three units to be a STR in order to write the policy for the triplex.
Rental Property Investor · Nashville, TN · Member since 2019 · 4 posts · 1 vote
7y
Anyone have any additional thoughts on Proper Insurance? Has anyone had to file any claims and can speak to their service and handling of a claim? Thanks!