Property Manager · Albany, OR · Member since 2016 · 58 posts · 23 votes
We're set to close on our STR in Florida in a couple days. Getting insurance on it was a nightmare. Several quotes, all over the map on price. I basically got a policy last minute that is VERY expensive (it's Florida, I get it) my question is about what I actually need covered. I'm getting conflicting info and just need clarification. I was told by my lender I am required to have windstorm protection. That makes sense. But we are financing this as an invesent property and intend to STR all year except the few times we'll vacation there. I'm hearing that I can just do a normal homeowners policy with windstorm because airbnb and vrbo have insurance for guests who book through them.
I'm not worried about the theft and damage from guests if the booking sites cover them. What I AM worried about is if a hurricane causes a ton of damage, will my property, that i mainly use as an STR, actually be covered with just a homeowners policy? Can I actually get just a homeowners policy and NOT an STR policy and save some money???
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
You need proper coverage with STR, windstorm and other coverages outside of and in addition to whatever AirBnB, VRBO and the like tell you they'll give you. Or bare bones cheap coverage to satisfy the lending requirements with you self insuring other potential casualties (e.g. terrorism is a common add on that most people decline to purchase)
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
I'm not savvy on Florida in particular, but I do know a couple of things....1) Don't count on AIR or VRBOs insurance 2) YOu will need to get a commercial insurance policy for your STRs
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
You need proper coverage with STR, windstorm and other coverages outside of and in addition to whatever AirBnB, VRBO and the like tell you they'll give you. Or bare bones cheap coverage to satisfy the lending requirements with you self insuring other potential casualties (e.g. terrorism is a common add on that most people decline to purchase)
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
4y
@Rachel Payton “Home Owners insurance” is for your primary residence, which you live in full time. You can’t get this for a Rental property of any kind…your insurance won’t be valid when you have a claim and they find out. Tell your agent straight up what you’re doing, and see what options they have. The Airbnb/verbose insurances have Nothing to do with your structure.
Insurance Agent · Orlando, FL · Member since 2015 · 297 posts · 122 votes
4y
You need to be 100% clear that your policy allows for short term rental (STR) use. If you file a claim with a carrier that doesn't allow for STR and they see your postings on Airbnb you can almost guarantee a claim denial. Don't be penny wise and pound foolish!
Some carriers write short term rental on a commercial form, some on the homeowners form (odd, I know), and most are on the DP3 (dwelling fire) form. You will generally find the most favorable rates on the DP3 form but it all depends on the location and characteristics of your home.
Insurance Agent · DFW, TX · Member since 2021 · 348 posts · 245 votes
4y
I know Florida insurance is a different animal, so I would recommend finding an insurance broker that understands investment properties whether LTR or STR. DO NOT trust any side insurance companies like Airbnb or vrbo offer.