Insurance options for HouseHacking (house mate) but for limited duration stays
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Thank you so much @Shawn C., the information is very helpful!
I have just started with MTR, and actually had my first tenant move in yesterday. I am definitely still learning the processes. For insurance, I have USAA for my primary resident and talked with them about coverage and needs. I went with continuing my USAA insurance and upped my personal liability slightly, added an umbrella policy ($1,000,000 coverage) which was very reasonable about $18 a month and required my tenant to have renter's insurance, which they did. I am using FurishedFinders, and provided the Renters Insurance through their associated platform Keyfinder to my tenant. Though the tenant did report the app was difficult to use, especially from a phone. They ended up having to call customer support. And as my target tenants are traveling and may not always have access to a larger computer screen that is something I will look into prior to the next tenant.
Good luck, and thank you so much for the information. It is really nice to talk with someone else who is figuring out this process.
Kim
9 Replies
- 2yRene HosmanPro MemberRental Property Investor · Denver, CO · Member since 2024 · 583 posts · 655 votes
Hi @Shawn C - I can't speak to CA specifically because I am in CO but I use Steadily for insurance for house-hack and mid term rentals. I also require my tenants of any length (I only rent for 30+ days) to have their own renters insurance for their own belongings so I don't see any big issue with having your part-time tenants get renters insurance and then making sure that your own homeowners policy is aware that there are others living in your home but that they have separate renters insurance. That's the way I'm currently doing it anyways!
I see, thanks @Rene Hosman. I did speak with a rep from Steadily and he said that they don't offer the househack/home-sharing insurance option for CA.
I had seen a few posts from renters who said they didn't want to require renter's insurance as that may be another point of friction but I appreciate your feedback, thank you!
- 2yRene HosmanPro MemberRental Property Investor · Denver, CO · Member since 2024 · 583 posts · 655 votes
Quote from @Shawn C.:
I see, thanks @Rene Hosman. I did speak with a rep from Steadily and he said that they don't offer the househack/home-sharing insurance option for CA.
I had seen a few posts from renters who said they didn't want to require renter's insurance as that may be another point of friction but I appreciate your feedback, thank you!
Shoot, sorry to hear they weren't able to help you there! I've heard CA insurance is tricky but had no idea just difficult. NREIG was another one I used for rentals but I don't think they do anything owner occupied. Do you have a good investor friendly real estate agent in your area you can ask if they have a referral for a good insurance broker?
Thanks, @Rene Hosman! I'll look into NREIG, just to verify that shared-home is not covered. Also, I will touch base with my current home owners insurance co but I'm curious about the scenario you laid out (requiring renter's insurance + advising home owner insurance that you have another person in the dwelling) -- did this suffice for you because you chose higher liability coverage?
- 2yRene HosmanPro MemberRental Property Investor · Denver, CO · Member since 2024 · 583 posts · 655 votesFor me personally, it sufficed to have my "normal" homeowner coverage and require renters to get their own. I wasn't required to have higher liability coverage and I didn't choose to do so but something to talk with an insurance broker about!
Quote from @Shawn C.:
Thanks, @Rene Hosman! I'll look into NREIG, just to verify that shared-home is not covered. Also, I will touch base with my current home owners insurance co but I'm curious about the scenario you laid out (requiring renter's insurance + advising home owner insurance that you have another person in the dwelling) -- did this suffice for you because you chose higher liability coverage?
When you purchased your home, did you work with a good agent who was investor friendly and knowledgable?
If so I would reach out to your agent and ask if they have any good investor friendly insurance broker referrals so you can have someone doing this kind of work for you and just presenting you with options! Hi Shawn,
Thank you for the question, I have the same one and am in the process of researching insurance options. I am also listing a room (MTR) in my primary residence in California. I was wondering if adding an umbrella policy might be a solution. I'd love to hear if you have some success in finding something that works.
Thanks!
Quote from @Rene Hosman:
For me personally, it sufficed to have my "normal" homeowner coverage and require renters to get their own. I wasn't required to have higher liability coverage and I didn't choose to do so but something to talk with an insurance broker about!Quote from @Shawn C.:
Thanks, @Rene Hosman! I'll look into NREIG, just to verify that shared-home is not covered. Also, I will touch base with my current home owners insurance co but I'm curious about the scenario you laid out (requiring renter's insurance + advising home owner insurance that you have another person in the dwelling) -- did this suffice for you because you chose higher liability coverage?
When you purchased your home, did you work with a good agent who was investor friendly and knowledgable?
If so I would reach out to your agent and ask if they have any good investor friendly insurance broker referrals so you can have someone doing this kind of work for you and just presenting you with options!Thank you @Rene Hosman!
Quote from @Kim Allen:
Hi Shawn,
Thank you for the question, I have the same one and am in the process of researching insurance options. I am also listing a room (MTR) in my primary residence in California. I was wondering if adding an umbrella policy might be a solution. I'd love to hear if you have some success in finding something that works.
Thanks!
Hi @Kim Allen,
So far, a few of the insurance options that were suggested weren't viable for me because of different reasons, i.e. Safeco won't take the Owner-occupied risk in CA, same for Steadily, etc.
I got a quote from Proper Insurance, which was a commercial package since it's considered STR (less than 6 months). It was expensive but included commercial liability, premises liability, alcohol, a bed bug extension if needed, and so forth. This is also impacted by how old your home is, so that was likely a factor for me.
From what I can gather, it's best to increase my personal liability for now and require the tenant to get renter's insurance to secure their own belongings. I am thinking of doing that until my current HOI comes up for renewal in January. I am going to check one more company to get a quote.
But please let me know if you find anything relevant for CA.
Good luck!
Thank you so much @Shawn C., the information is very helpful!
I have just started with MTR, and actually had my first tenant move in yesterday. I am definitely still learning the processes. For insurance, I have USAA for my primary resident and talked with them about coverage and needs. I went with continuing my USAA insurance and upped my personal liability slightly, added an umbrella policy ($1,000,000 coverage) which was very reasonable about $18 a month and required my tenant to have renter's insurance, which they did. I am using FurishedFinders, and provided the Renters Insurance through their associated platform Keyfinder to my tenant. Though the tenant did report the app was difficult to use, especially from a phone. They ended up having to call customer support. And as my target tenants are traveling and may not always have access to a larger computer screen that is something I will look into prior to the next tenant.
Good luck, and thank you so much for the information. It is really nice to talk with someone else who is figuring out this process.
Kim
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