Medium-Term Rental Insurance - Keep Prosper or Switch to Another Company

[Sarah Selle]

I own a medium term (30+day) rental in Pennsylvania. A few months ago, I switched my insurance to Proper, as it seemed to offer the best coverage. After signing up, they then reached out about requiring an electrical and plumbing inspection. One of the requirements was no cloth wiring. The electrician that inspected explained to me that there was some cloth wiring present, but it was all grounded, making it safe. No reason to replace. Unfortunately, Prosper is refusing to cover without remedying the situation (at least a $1k in materials plus labor).

I always want to fix any problems within my rental if they arise, but I don't want to replace something that is perfectly safe just to fit a policy. I am looking into possibilities to remedy as well as getting quotes from other insurance companies. Does anyone have any insight on whether other insurance companies will insure with cloth wiring or companies that offer good coverage?

My goal is to offer a safe rental, with good comprehensive coverage so I don't leave my home vulnerable. I appreciate your thoughts in advance!

[Lauren Kormylo]

Someone on the short term rental forum just posted that Proper would not cover them with cloth wiring, but Foremost will.  

[Sarah Selle]

Thank you, Lauren!!

[Elise Bickel Tauber]

We've had very good luck with foremost insurance for our owners that we manage for. The other company we have had good success in the past with (but haven't used recently) is Nationwide. 

[Sarah Selle]

Thank you, Elise!

[Jonathan Styer]

Hi @Sarah Selle,

When it comes to insurance companies willing to cover properties with cloth wiring, it can vary. Some companies may have stricter policies, while others might be more flexible. It's worth reaching out to multiple insurers to see what options are available. Larger national companies like State Farm, Allstate, and Liberty Mutual are known for providing comprehensive coverage, so they could be good places to start your search. Be sure to mention your specific needs regarding cloth wiring when getting quotes. Good luck!

[Sarah Selle]

Hi @Jonathan Styer!

Thanks for the information! Since posting, I have gotten more information, and it looks like I'm actually dealing with NMC, not cloth wiring. (Lot's of electrical info but basically it is safe and makes finding insurance easier.) So that has made some changes to my search.

That being said, I have not reached out to State Farm, Allstate or Liberty Mutual. I was not aware they offered comprehensive coverage for medium-term rentals. I appreciate your help!