Short Term Rental Insurance in Florida

[Seth Schmidtmann]

We are in the process of purchasing a short term rental property in Florida, and we are gathering quotes from different insurance companies. We're looking for any information on a Company called Proper. Can anyone tell me whether or not this is a quality company? So far, they have some of the best prices. Any information will help.

[Collin Hays]

Quote from @Sarah Kensinger:

Quote from @Collin Hays:

Quote from @Sarah Kensinger:

Quote from @Collin Hays:

Quote from @Sarah Kensinger:

Quote from @Collin Hays:

Quote from @Sarah Kensinger:

Quote from @Collin Hays:

Quote from @Sarah Kensinger:

I'm surprised the question on if Proper is a quality company was even asked. Not only are they a superior company but they offer coverage on things other STR insurance companies do not. There are many companies that are less expensive and do offer STR coverage, but do they cover.... loss of rental income, bed bug infestations, loss of income over a furnace/ac or another major system going out, extended liability for guests off the property, and no limit on damage from guests. It all comes down to what you're willing to pay and feel comfortable with. As well as realizing the old saying is very true...you get what you pay for.

Proper is a broker. I don't think anyone questions whether they are a good brokerage. They are not a STR insurance company, nor are they "covering" anything. All of the loss items you specify are available through a variety of brokerages, because they are all selling the same policies.

I've had this discussion with you before and since you didn't believe me when I said their NOT a brokerage and never have been, I suggested you call the company and get more info. They are not selling the same policies as all the others, since clearly all the others don't cover everything they do. A couple quick phone calls can tell anyone that. Also, when you make a claim, it stays in Proper and you deal directly with them and no one else, that's not the case with a brokerage. They line you up with a company and move on to the next customer. I again urge you to call the company and get more info on who they are, who backs them, and what they do for the STR world.

Proper isn't an insurer. Their policies are insured by a Lloyds of London syndicate, as are most other STR policies.

From the Proper website: 

• “Underwritten by Lloyd’s of London, AM Best’s Rated A”

Yeah, they're an MGA not a brokerage. 

If they were an MGA they would only sell through agents, not to the general public.  An agency of any kind is a brokerage.  

"A managing general agent (MGA) is a type of insurance agent who has the authority to underwrite insurance policies. Underwriting means an MGA can assess a customer's risk and offer them insurance. Traditional insurance agents sell insurance policies to customers. An MGA can sell policies and also approve them, set prices and settle claims." ~Definition of an MGA~ 

 uncle.  😂

Haha....no you learned something. ;)

I'm not exactly sure what you taught me.  I've spent most of my career in medical, property, and casualty insurance.  I have also owned Short Term Rentals since 2005.

A managing general agent (MGA) or a managing general underwriter (MGU) is a specialized type of insurance agent or broker that has been granted underwriting authority by an insurer, and can administer programs and negotiate contracts for an insurer.

An MGA’s functions can include:

• binding coverage
• underwriting and pricing
• settling claims
• appointing retail agents in a certain region

At its core, the MGA manages all or part of the insurance business of an insurer and acts as an insurance agent or broker for the insurer, while working as the intermediary between carriers and agents, and/or insureds.

The MGA is not an insurer.  Proper is not an insurer.  Neither is Southpoint Risk or CBIZ an insurer.  Most of the products that these brokers sell are underwritten by Lloyd's of London.  They are essentially a field agent for the insurer, as are most other agencies/brokerages that sell STR policies, meaning they have authority to underwrite, bind coverage, negotiate and settle claims, and appoint retail agents.