STR Insurance Policy... who do you use?

[Zigmunt Smigaj]

I cant find a STR insurance policy that inst 5000-1000 in Florida (Quote from Proper Insurance), this kills a lot of profit. Who do you use and how much is normal for a Florida insurance policy either as a business through a LLC or personally held as a landlord. And if you've encountered issues with either.

[John Underwood]

Foremost had a better policy than Cbiz or Proper for me. They even cover my boat dock. 

[Marshall Leipprandt]

@Zigmunt Smigaj My two policies are $6K and $7K annually and they are with Frontline. I got to them through an insurance broker who I work with who shopped out rates. Both of my flood policies are each around $1K annually and are through Neptune.

Operating in FL, there is no way to get around the cost of insurance with the current status of the industry. 

I haven't encountered issues with my current providers but was with FedNat a year ago before they sent me cancellation notices. They were dropping policies all across the state so I was left scrambling to line up new carriers last minute which was stressful. I think that is always going to be an option on the table too just because insurance in FL is so fickle.

[Leslie Anne Morris]

I use Proper and I was using them in Florida but it was condo insurance/non-beachfront.

[Zigmunt Smigaj]

Quote from @John Underwood:

Foremost had a better policy than Cbiz or Proper for me. They even cover my boat dock. 

Thanks I'm reaching out to them now for a quote. So far I'm seeking quotes from Proper, CBIZ, Foremost, and a couple local brokers. None of the national carriers (travelers, Alstate, American Modern, or Statefarm) insure STR or property in FL... very odd. Goes to show the industry is all about the insurance company and not the insured.

My assumption is the profit of ABNB justifies the premium. 

This property is in Largo, not beach front, roughly 5-7 miles from any coastline and no history of hurricane damage. Just a plane old SFH with a pool.

[Bruce Woodruff]

I use State Farm, but that's in Arizona. $100 a month on average...

[Kerry Baird]

I use Foremost, Proper, and Obie.  Dang nab it, insurance is expensive in Florida!

[Kenneth Garrett]

You can try Goosehead Insurance.  They are a Florida Insurance Company.  I tried to use Proper, but they stopped issuing policies in my area. 

[Dan Maciejewski]

Quote from @Zigmunt Smigaj:

I cant find a STR insurance policy that inst 5000-1000 in Florida (Quote from Proper Insurance), this kills a lot of profit. Who do you use and how much is normal for a Florida insurance policy either as a business through a LLC or personally held as a landlord. And if you've encountered issues with either.

I let all my clients know that insurance in FL is a nightmare, and only getting worse.  It definitely cuts into ROI, but we do have great ADR and occupancy!

Your costs will vary based on your coverage and how much your building's worth.   I have a lot of clients in the West Central Pinellas area.  A lot of them have had good luck with a broker on Seminole Blvd -- Masi Insurance.  I haven't met him, but he's gotten the best quotes for sure.  I've seen others have quotes of 13k that he's gotten down to  around 7k.  For the average house (500-600k), I'm seeing 3,500-5,500 for STR insurance.

[Trent Reeve]

Quote from @Zigmunt Smigaj:

Quote from @John Underwood:

Foremost had a better policy than Cbiz or Proper for me. They even cover my boat dock. 

Thanks I'm reaching out to them now for a quote. So far I'm seeking quotes from Proper, CBIZ, Foremost, and a couple local brokers. None of the national carriers (travelers, Alstate, American Modern, or Statefarm) insure STR or property in FL... very odd. Goes to show the industry is all about the insurance company and not the insured.

My assumption is the profit of ABNB justifies the premium. 

This property is in Largo, not beach front, roughly 5-7 miles from any coastline and no history of hurricane damage. Just a plane old SFH with a pool.

 just went thru this, closing on my 1st property in Panama City beach today. I was surprised at the high cost. If you want to message me, i will share who i used (just in case sharing would break any rules). 

[Ryan Sappington]

Quote from @Bruce Woodruff:

I use State Farm, but that's in Arizona. $100 a month on average...

I wasn't aware State Farm supplied STR insurance, but as I'm a longtime loyalist to them on main property and currently in closing process of first STR... getting quote and attempting to be specific on the approximate occupancy of outsiders, fingers crossed they're accustomed to it to some degree here (Oklahoma). $100/month avg seems wildly cheap though, and its potentially bc we're talking about different size/scope of properties? Mine=$600k lakefront, dwelling closer to half that...300-400k.

[Bruce Woodruff]

Quote from @Ryan Sappington:

It may depend on specific area, but I asked my agent specifically for insurance for a "Short Term Rental, y'know. like an AIRBnB..." and they knew immediately which product to offer me. It's commercial insurance.

[Ryan Sappington]

Quote from @Bruce Woodruff:

Quote from @Ryan Sappington:

It may depend on specific area, but I asked my agent specifically for insurance for a "Short Term Rental, y'know. like an AIRBnB..." and they knew immediately which product to offer me. It's commercial insurance.

Awesome, very helpful, thanks! I attempted a very similar approach to say "look, im aiming to have this rented out for a third or up to half the year via AirBNB... and want that factored in for liability sake more than anything, not interested in any supplemental loss of rental income" .... she simply replied "Oh, ok, did not know that... good to know, I can up the liability to $1M to cover you in that regard, and add the 'Home Rental' package to it that is $271 annually". So, doesn't sound commercial IMO, but now I'm even more curious @Bruce Woodruff how much of a variance that is from what yours ended up being.   

[Andrew Steffens]

I have an agent out of Miami that gets great rates, usually with Citizens but depends on property (distance to water, etc).  PM me if you still need and I will share her contact info!

[Derick Bonsu]

Quote from @Bruce Woodruff:

I use State Farm, but that's in Arizona. $100 a month on average...

 So jealous. Come to Florida.

But to answer your question, @Zigmunt Smigaj 5K sounds about normal. I pay a little over 5K. The only way to get around it is to increase your minimum to 30+ Days, but then you're not really doing STR.

[Kathy Cooper]

I'm not in FL but have found Foremost to be half of Proper Ins recently. Yes, apples to apples. Not sure why. Foremost has been a good co. for me so far. Easy to work with. Yes, STR insurance is something to make sure you figure into your numbers...

[Barrett Bridgewater]

@Marshall Leipprandt have you looked into the possibility of removing the FEMA flood designation off your buildings? There is a potential that your buildings sit above the flood level and would then qualify for removing the flood designation. That would result in removing any lender requirement to purchase flood, and would free you up to decide if you think flood insurance is truly wanted.

We've had some success on the Panhandle doing this. The FEMA flood maps can be highly inaccurate... which places buildings in flood zones that shouldn't be. Even if it is off by 1inch, that can make a big difference.

[Dan Slaughter]

@Marshall Leipprandt. What is the process to remove a structure from the FEMA flood designation? Just received my renewal letter, my house on 30A went from just over $11k to almost $18k. That's a punch in the gut for sure.

[Marshall Leipprandt]

@Barrett Bridgewater My current properties are actually not in FEMA designated flood zones, but I elect to have flood insurance simply for peace of mind.

@Dan Slaughter That is insane! I think @Barrett Bridgewater might have an answer to that question as I have not done it before for my properties. I'm guessing your jump up is the combined increase in cost between your homeowners and flood policies? We've got a fairly large rental property whose flood policy is $1K and the homeowners is just under $7K. Even our "smaller" rental is $1K flood and $6K homeowners, but neither are in FEMA flood zones, we just choose to pay the additional $ for the peace of mind.