STR Managers: are YOU insured? Are your cleaners?

Question

Curious to hear how STR managers are insuring their business, and whether you are requiring subs like cleaners and handymen who go into the property to be insured.

If so, I'd appreciate info on what company you are using for insurance and what it costs.

David Bergmann · Answer

For STR management, you'll want both a professional liability (errors & omissions insurance) and general liability policy. You'll also ask your clients to add your management company as an additional insured to their homeowners insurance.

I'm assuming your asking the question about subs because the application asks whether you require that your subs are insured?

Paul Sandhu · Answer

No insurance. 23 STRs. My wife is the cleaner. I'm the handyman. My tenants are well paid ruffians.

John Underwood · Answer

No, I am not a licensed Property Manager. I only manage my own properties.

If I wanted to manage other properties I would do it via a Master Lease to avoid all the regulations of being a PM.

Collin Hays · Answer

My management co is insured, as well as our employees. We have a few housekeepers who are 1099 workers and they are supposed to insure themselves, though I doubt that is the case. For most of our housekeeping, we utilize a housekeeping company, and they are insured.

John Underwood · Answer

I don't require my cleaners or handyman type persons being insured. More extensive work would be done by a licensed and insured contractor.

Not worried about the person vacuuming or mopping being insured.

Benjamin Schultz · Answer

@David Stokley, I appreciate the response - never heard of Thimble.

Thimble sounds like a great thought that could potentially help me have my cake and eat it too. Competing quotes are $90/week un-insured, versus a cleaner asking $150/week insured. So, while $50/mo is real money in this case it would effectively bring my $90/week un-insured lady up to $101/week insured. Cool.

I own the buildings and am beginning to hear more sentiment such as yours, the "ehh, you'll be fine without." As this is a traditional apartment building there's no passing cost onto the guests, but ofcoarse in theory these costs can be passed on. Clean building = happier tenants = ability to ask for the slight monthly rent premium.

Thanks again David!

Dave Stokley · Answer

Hey @Benjamin Schultz I was looking into insurance for my cleaners and found a company called Thimble that quoted me < $50/mo for $1m liability coverage for 1 cleaner.

Do you own the units or does someone else? That for me would make a huge difference. If I was the owner I'd probably be fine with an uninsured cleaner, but if someone else was the owner I'd definitely want the insurance. If she won't pay for it just raise the cleaning fee by $5-10 per guest to cover your costs.

Benjamin Schultz · Answer

Stumbled upon this thread with a similar question.

I'm up here in New Hampshire with 2 six unit apartment buildings right next door to one another. These are traditional garden style apartments with interior stairwells/halls/commonspace. Not STR. Year leases. Pretty simple.

Weighing my weekly cleaning quotes. Long story short, the cleaning lady (not a company) who I like the best is NOT insured and mostly does houses. That said, her references check out and she sounds very professional/capable. And her price is right.

Do I put my foot down and continue to hunt for an insured cleaner, OR for a smaller project like this is the NOT insured lady a good solution?

Dave Stokley · Answer

@John Underwood do you manage STRs for other investors? If so, does your management company have professional liability or general liability insurance?

STR Managers: are YOU insured? Are your cleaners?

STR Managers: are YOU insured? Are your cleaners?

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