Insurance company is balking because I don't live in the property

11 Replies

How is everyone? Quick question. As an investor we, obviously, don't live in our investment properties.

The issue is that my insurance company didn;t want to renew the policy today because the house is a vacation rental, meaning that it rents only for around 4 1/2 months out of the year.

The balance of the year we use it as a second family home (we come and go all the time and we do enjoy the property).

So we're in the house for about three to four months out of the year and have it rented for about another four months during the year.

Does anybody have trouble insuring their vacation rental properties in Florida? And if someone has some good solutions or options then it will be greatly appreciated. Because I have a feeling that the different insurance companies that I'm going to shop around with are going to hike the rates tremendously.

I prefer to be upfront with them right from the beginning about the usage of the property to avoid any issues down the road. I just hadn't realized that this would be an issue last year when we insured the property. But when they asked me this time, upon renewal, I told them exactly how this specific property is being utilized.

Thanks and any suggestions will be greatly appreciated.

Personally Some Insurace companies only deal with HOME owners insurance, not vacation home insurance, its a class by itself.. You might want to reach out to a company that deals with this type of insurance like Farmers Insurance They have specialty insurances like this that are geared toward what you need. Good luck.

Originally posted by @Jason Bott :

@Maged Bishara per some of the other threads on BP, CBIZ seems to be the main one.  I also know Progressive's home owners product can handle rental properties.

 Strange. I was with Progressive and they're the ones that didn't want to renew there insurance. 

I'll give CBIZ a try...

Hi Maged,

We work with a number of carriers that specialize in short term rental insurance. They understand the risks and rate it accordingly. Oftentimes you will find the rates are not much higher than on an annual rental property.

The short answer is that the right agent can get you coverage quickly. I'd be happy to answer any specific questions you have! Feel free to message me any time.

- Jared

Originally posted by @Jared Townsend :

Hi Maged,

We work with a number of carriers that specialize in short term rental insurance. They understand the risks and rate it accordingly. Oftentimes you will find the rates are not much higher than on an annual rental property.

The short answer is that the right agent can get you coverage quickly. I'd be happy to answer any specific questions you have! Feel free to message me any time.

- Jared

 Hi Jared,

That's great. Can you buzz me at 954-601-4772 later on this afternoon?

Thanks,

Maged

Originally posted by @Jason Bott :

@Maged Bishara per some of the other threads on BP, CBIZ seems to be the main one.  I also know Progressive's home owners product can handle rental properties.

Hi Jason,

In many parts of the country CBIZ is the main player. Due to Florida's booming vacation rental business (Disney anyone?) we have several others that provide more comprehensive coverage catered to vacation rental properties. Progressive's home owner's partner (American Strategic Insurance) is one of the industry leaders in this area.