You will find a better rate with State Farm, which also just added the same endorsement for short term rentals. I’ve checked!
State Farm insurance also added this as of January 1, 2019 and has better rates than USAA!
State farm is always higher than USAA for every property I’ve quoted. I have State Farm for auto though because they have lower auto rates than USAA.
Several STR hosts in San Antonio compared rates and State Farm is lower here.
That is strange because I also have my auto insurance with USAA and always get told by competitors that they CANNOT match or beat USAA. I also get additional discounts for having multiple vehicles and houses with them.
1 Like
I assume this is for home owners insurance only? When I checked recently USAA outsources rental insurance to another company, and they told me they don’t do vacation rental coverage. I ended up going through Farmers.
This is great news! When I became an Airbnb host 2 years ago, I was told by more than one USAA representative that my homeowner’s policy would be invalidated if I did more than 1 short-term rental in a given month, and/or if I had a tenant on a lease of less than 6 months. I felt I had no choice but to switch my insurance from USAA. I soon learned that most insurance companies have similar limitations. I found an insurance broker who was able to cobble together policies from 2 companies. My premiums are much higher now than when I was with USAA, which resulted in my monthly mortgage payments going up. I’ll be calling USAA this week to find out if I can go back to them while still hosting.
1 Like
I was told too that I could only have one renter in 6 months. I had to change to another company. I’m going to call USAA tomorrow. I use them for everything. Best company ever. Maybe it’s state by state??
1 Like
I am in California and have been recently told by State Farm, Liberty Mutual and AAA that homeowners covers all short term tenants when you add the umbrella personal liability. It costs roughly $100 per year and the liability follows you in any situation where you might be sued
1 Like
@Newbiehost and @sparkparker, please do post what you find out. I’ve been a USAA customer for over 30 years. At the time, I got in because I was the daughter of a veteran. Now I know they are taking everyone. Does anyone know if vets (and descendants of) have different rates? I doubt it, but maybe(??) Grandfathered in? Or is it state by state? I know it varies by how many policies you have bundled. I have homeowners, two cars, checking accounts and a credit card. I’m not sure if the banking stuff matters. Also, my sisters rental insurance is bundled under my account. Sorry for the TMI. I’ve never found rates for anything lower than USAA, though AAA is super competitive and come close.
I too have a mortgage and checking and savings and several credit cards with them in addition to multiple cars and houses insured. I never financed cars with them though as Pentagons Federal Credit Union always did better.
I spoke to USAA. They are rolling it out in selected states, and my state is still in a TBD status as to when/if it’ll be available. The agent I spoke to initially knew nothing about it. He put me on hold for a while and then came back with info. I had to tell him to go ask about “sharing economy endorsement”.
From what they said, it will automatically be added to new or renewing policies once avail in given locale. He wasn’t sure on potential costs (although Initial poster said no charge?). However, sounds like there are caveats, such as:
- Policy homeowner must live onsite and this must be primary residence
- No more than 2 sets of guests per month.
- No more than 2 guests at a time
- Few other small print things which I didn’t pay much attention to because it is moot point for me here in VA right now. Things related to $10k limit on furnishings damage and theft, amongst other things.
Generally speaking, I am a massive fan of USAA. However, any time an insurance company rolls out new coverage without additional premiums, you can be sure it has limitations. Specifically, I would be hesitant to move away from the strong liability insurance that my current Proper Insurance provides. When I leave a bottle of wine for guests, I like knowing that I’d be covered if they got in trouble while “drinking” — I don’t need a lawsuit regarding serving alcohol, for example. And if my neighbors dog were to bite a guest or the guests were to get hurt while on an area hike (all hypotheticals to illustrate my point), I like knowing that I’m covered under my Proper policy. Liability can be much more impactful than the potential for damage to my sofa!
Anyway, good topic. Thanks all.
4 Likes
Wrong and wrong! I received incorrect info from both Liberty and AAA agents. I’ll circle back to State Farm anticipating to hear the same when getting down to the nitty gritty
1 Like
@JaneB ??? did they tell you incorrectly because a business activity clause makes the homeowner’s insurance invalid?
Yes. And the “home-sharing” insurance that Liberty Mutual offers is limited to 31 days per year. Less than 3 days per month? The search continues
1 Like
Just got a new policy with USAA on a short term rental property I have had for over 7 years in Texas. Very clear - this is an STR policy, not an umbrella policy. My policy clearly states that my property is a tenant-occupied home that will be rented for periods of less than 1 month at a time. This is new to USAA and due to the fact STR’s are becoming more common, they have decided to break into the market. This policy was sent to underwriting for approval and was finalized today. USAA offers extremely competitive rates and I am thankful they have decided to offer STR insurance. I do believe many larger companies will follow USAA’s lead which will help curtail the outrageous premiums that seem to be a major pitfall to anyone attempting to enter this investment arena. My policy premium has doubled in six years’ time. Not OK. I canceled my policy with Proper Insurance, a good company but the premium was just too high.
4 Likes
@gcave So does that mean you CANNOT allow short term stays longer tan 30 days? I have a USAA homeowners policy on the house (not STR specific yet). I allow stays of longer than 30 days and they are very popular with military families that are between houses (as well as civilians now that the market has been so hot and they are selling their houses before they can close on the new ones.
Would you mind sharing (publicly or privately) your new STR rate with USAA? I know you can’t compare it to a USAA homeowner’s policy for the same house to help me in my specific situation but maybe it will still help inform me, pricewise.
1 Like
I’m curious if this is a totally separate policy than a homeowner’s policy? When I renewed my regular homeowner’s policy in February, my documents included the “Sharing Economy Endorsement” as listed above, and it appears to be no additional cost and no additional documentation or notification I need to do. Now I’m a bit concerned if you’re saying you have an official separate STR policy? I wonder if requirements differ by state?
@Militaryhorsegal I don’t know if your policy includes the new “Sharing Economy Endorsement,” but it clearly states that it is for stays <30 days. So I wonder if stays over 30 days are considered roommates with liability covered by the main homeowner’s policy, or if we are underinsured with USAA for stays >30 days.
1 Like
@GardenFairy If I have the endorsement I haven’t yet read it. Honestly I have not looked. I don’t intend to pay more to include it if it doesn’t so unless it is free (and already included in the latest renewal, as I seem to remember reading here sometime before) I don’t know. I’m not going to restrict the length of stays regardless. Ultimately I figure as a homeowner’s policy holder and self insuring the rest I should be ok…of course that is, until I’m not. I’m not exactly judgement proof in NC like @KKC is in TX because of different state laws. Additionally, I am not sure if someone with almost as much debt as assets is different from someone who owns the assets fee and clear. I’d probably be screwed either way.
1 Like
This is a new product that is offered in some states. My policy had to be approved by underwriters due to the fact that Texas STR policies are not officially scheduled to be offered until January. I also have snowbirds that rent 3 months out of the year. It is a separate policy.
2 Likes