STR insurance poll

I use CBIZ

Welcome to the forum I look forward to learning with you

RR

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Ty… I’ll be calling CBIZ today!

It’s nothing new; if you don’t have the necessary policy riders etc to allow for STR (i.e. higher risk) then most insurers will either disallow any claim, penalise you financially or simply terminate the policy, often without a refund of an unexpired portion.

Good luck finding something, I’m still amazed at the prices insurers want for STR in the U.S.

JF

I’ve not found that to be the case. STR insurance is more expensive (because the risk of loss is greater), but it wasn’t difficult to find insurers. I’m insured through Proper/Lloyd’s of London.

Thank you for your response… a fellow host here went with Olympus insurance and she had no premium increase over her standard HO Ins policy… they declined me cuz our home is over 20 years old.

proper insurance said they only sell commercial plans not where we the homeowners are in the same house that were short-term renting. I believe they also said they don’t do a week or less. Can you tell me more about your coverage in would you share the price

My mistake - I didn’t realize you live in the property, that can be a bit tricky to find a policy/rider to cover that. Have you looked into Slice? It’s been discussed here in forum in the past.

I have a policy through Proper. It’s about $3300/yr, with building, contents, liability ($1,000,000/2,000,000) and income loss ($75K/yr, no time limit)

Hi!

As I understand it slice would be an additional insurance coverage I would purchase outside of my standard homeowners policy. It would cost an estimate of 250 a month or an additional 3000 a year. Just not cost effective as I understand it.

Ty,

Julia

There ads talk about per booking charges, have you looked at their website?

So even if it’s 3000 a year, divided by 100 is 30 per booking.

I do not think it’s that much tho, the website says from $7 a booking

RR

Yes, ty.

Apparently you can start and stop the insurance based on needs it works out to an average of 250 a month if you don’t stop it.

It is also not backed by the government… three young men started the company if they go out of business you’re done.

When we bought our NC home, three companies told me that they covered STRs. When I got the policies for each, and snuggled down for the exciting job of reading the fine print!, I discovered that neither covered my STR situation. There were variances for full home rental / host on site rental / etc.

I spent the next day calling, calling and calling more insurance companies and finally found two that would take our situation. Just to be certain, I then called the one I was with and asked point blank, and sure enough, they confirmed they would deny coverage.

We ended up with Proper thru/ Lloyd’s as Proper and CBIZ were the only companies I could find in my area.

Moral: Fine print can put you to sleep but it can also save your katuckus. :thinking: Thank goodness, the nerd in me likes that :poop:

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May I ask do you rent out your whole home on short-term or are you in the home on short-term?

Correct me if I’m wrong, but insurance companies aren’t backed (insured) by the government, like the Federal Deposit Insurance Corporation does for bank deposit accounts. In any case, Slice has an AM Best rating of A+, and Standard & Poors rates it Very Strong.

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Yes good companies have a backing so if they ever go out of business you’re not left holding the bag

Then pay up for a policy you are comfortable with. This is a business, you need insurance and you can write it off. Talk to your tax person, sometimes a loss is a gain.

RR

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Wise words! Thanks 4 the push!

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There isn’t an option for self insured. So I check the choice not offered. None of my properties in my portfolio are not insured. So I am saving tens of thousands of dollars a year. In all these many years I have never had an incident where I have wished I had insurance to cover a cost. So if a major event does happen, all the money I saved over the years will be enough to cover it with lots of money to spare. I feel the real estate insurance industry is just so corrupt and a waste of my money. Just for fun and entertainment, I walked into a agent’s office to get a quote. He based my policy payments on my credit score and the property. I laughed so hard! I told him that I will pay for the year’s policy up front. Still he didn’t waver on the premium. I said what does my credit score have to do with the price if I pay the whole year up front? He has the most insulting stupid reply, “it is what it is”. WTF! I have a 0 credit score and proud of it, so why should I pay more if I am willing to pay up front? “It is what it is”. LOL. So very amused I visited other agents and all of them had similar prices and all also based it on my credit score.

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You hope…

202020

JF

LOL. Not hoping. Knowing. Knowing is a very securing feeling. Now if all my eggs were in the same basket (all in one location) and a natural disaster occured (tornado and etc.), then I will be hoping. But if one property is wiped off the map, I have the funds to rebuild. If a third of my portfolio was wiped off the map, I have the funds to rebuild.

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It has to do with what type of customer you will be, and it helps them evaluate if they want to insure you. I am sure some bean counters have done the math, people who cannot pay their bills are more likely to make a claim because they are broke.

RR

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