STR insurance question

[Kyle Debiase]

hey guys I'm about to make an offer on my first real estate investment. ill be using it as a str. im just curious what kind of insurance policys other are using. do I just get normal homeowners and then get some kind of STR policy ontop of that? or is there an insurance just for STR that I can get that would help avoid getting a normal homeowners policy. the house is also on the water in atlantic city new jersey so I will also need flood insurance.

any insight on this would help me alot thanks.

[Joe Splitrock]

@Kyle Debiase many of the standard home owner insurance companies do not offer short term rental policies. They may cover part time STR, like renting a room while you live there, but not full time. Tell your insurance carrier exactly what the use of the property is to make sure you are covered. Using the property outside of your insurance terms can result in a claims denial. Short term rentals have the highest incidents of liability lawsuits (compared owner occupied or long term rental). That is why some carriers stay away from them.

As far as providers. I use American Modern. Others recommend Proper, but the quote I got from them was really expensive. My suggestion is work with an insurance agent that brokers multiple carriers and they can get multiple quotes. Get three quotes at least and compare what they have to offer. Make sure you have a decent amount of liability coverage. All those people cycling through can really increase risk in that area.