Another STR Insurance Questions

3 Replies

Good Evening,

Two of my STR policies are up for renewal with Proper. Coverage through them is about 2.5 - 3x more expensive that what I am being quoted by USAA. I understand that this is apples and oranges, but please hear me out and let me know your thoughts:

I am thinking about switching back to a landlord policy and adding supplemental Bed and Breakfast General Liability Coverage through BiBerk (Berkshire Hathaway). That will add $275/year for a 1M policy.

I strongly feel that USAA would cover a property damage claim due to storm, fire, etc. I dont think they would cover a liability claim under a landlord policy if they knew the home was an STR. For those that dont know - USAA currently has an STR rider in 34 states, but its not available in NC yet.

What do y'all think of this strategy? 

Hi @Justin Tahilramani . I think it is a bad idea. I am a Proper customer and I know that the coverage is more expensive, but it is very comprehensive. I can't comment on the BiBerk coverage as I have never heard of it.

Frankly this seems like penny wise and pound foolish to me. All you need is one incident and you are wiped out. The Proper insurance covers guests even when they are off the property.

I live by this mantra: Anyone can sue anyone, anywhere about anything. They are the victim and you are the big bad rich landowner.

I didn't say not to check it all out. Give your current policy to both USAA and BiBerk and have them match it. See where you end up price wise. Read the fine print on the umbrella policy which is what the $275 a year is buying. There can be loopholes when it comes to short term rentals.

A quick scan of the BiBerk site shows it is pretty much ala carte. You pick and choose what you need. Like alcohol coverage. It is a separate piece but included in the Proper policy.

Insurance on the STR is something I won't mess with. I don't think it is the best way to save money. I am all for seeing, but unless I am covered buttz to nutz, forget changing. My 2 cents.

Originally posted by @Justin Tahilramani :

Good Evening,

Two of my STR policies are up for renewal with Proper. Coverage through them is about 2.5 - 3x more expensive that what I am being quoted by USAA. I understand that this is apples and oranges, but please hear me out and let me know your thoughts:

I am thinking about switching back to a landlord policy and adding supplemental Bed and Breakfast General Liability Coverage through BiBerk (Berkshire Hathaway). That will add $275/year for a 1M policy.

I strongly feel that USAA would cover a property damage claim due to storm, fire, etc. I dont think they would cover a liability claim under a landlord policy if they knew the home was an STR. For those that dont know - USAA currently has an STR rider in 34 states, but its not available in NC yet.

What do y'all think of this strategy? 

Justin, every insurance policy has language within it stating if the policy holder has misrepresented the risk the insurance carrier has the right to deny claims.  

With your suggested strategy, you are leaving the door open to having even a standard Fire claim denied.  Probably not likely, but not guaranteed they wont fight you on it.

At 3x's the cost, I'd continue to try and find alternatives.