High Insurance cost and llcs

[Rebecca Oliver]

Hello,  

I finally found the property I wanted for my first STR. I found a lender who said we needed to put it in a LLC. so I made one of those and everything was going smoothly until I went for insurance quotes. Due to it's location near the coast (about 45 minutes away) it requires hazard insurance so between that and the general liability insurance I was told we needed just to get the underwriting for the hazard insurance, the total insurance cost a month is $425. Did NOT see that one coming. Is this common? How are people able to market with the low insurance numbers on realtor sites if it's required to have so much? Did I make a mistake by putting it into a LLC? Any advice to get it lower?

Thanks,

Rebecca

[Jason Bott]

@Rebecca Oliver the proximity to the coast and the occupancy status as a STR will drive the premium before the LLC ownership does.

The STR insurance market has a lot of good options, but very few of them will come from your Home and Auto agent. If you haven't already, you should connect with a commercial insurance broker as they will have options for you.

One of my team member is in Augusta and knows the STR market well. I'll dm you the options we use for our clients in the SE.