STR Insurance during Year 1

[Mark Miles]

So I know there's been some discussion here about whether or not Fannie Mae permits STR during year 1. Even if they now do, some lenders are still behind the times or, bottom line, lenders are still allowed to make their own rules so some lenders are not permitting STR during year 1 still. Anyway, when you obtain financing for a new purchase, you have to show proof of insurance in order to close on your loan. Many people here use Proper Insurance (or other STR-specific insurance).

I'm very hesitant to show my lender that Proper will be my insurance company for his house bc my lender has been quite adamant against me renting during Year 1. And if my lender sees Proper as my insurance, it will be quite evident what I'm doing as they specifically insure Airbnbs/STRs. So I'm considering carrying 2 insurance policies for year 1: getting a bare bones home insurance policy from a traditional insurance company (Allstate or State Farm, etc) and also getting a Proper Insurance policy over top of that to ensure I'm covered for STR-specific stuff. Then after 1 year, I can cancel the Allstate policy and keep only Proper Insurance.

Anyone else run into this and what did you do?