What kind of Insurance for STR Property?

[Gigi Sanchez]

What kind of insurance are folks in Florida getting for their STR properties, in particular on the coast. Thinking in particular of Destin, Pensacola Beach area. Thanks in advance for any recommendations you can give, both on the kind of insurance to get AND on insurer info.

[Matt "Roar" Gardner]

@Gigi Sanchez - As with most things insurance, it'll be determined by your lender, if you have one, and what you want covered to sleep at night.  As an investor and realtor in the area, I've seen people really run the gamut with respect to insurance coverage. I've seen cash purchasers on $1M+ properties have no property insurance whatsoever (but they typically will still have some liability coverage), and I've seen others go above and beyond in terms of coverage also. 

For a standard 4 bedroom house, around $750K, your insurance could run between $2K on the low end to $6K on the high end.  

I personally don't have any flood insurance (we just self insure there), but if you'd like to get some, that'll really depend on your flood zone and elevation certificate. Often FEMA flood insurance will only run about $1K/yr. The catch there are the CBRA Zones, where subsidized flood insurance isn't available, so you'll need to get private flood insurance, which could vary drastically as well.

Moral of the story, find a good realtor (who hopefully has good insurance connections) to help guide you through the process and the numbers. 

Best of luck!