I own 11 STR. Here’s how I have them insured.

I own 11 STR. Here’s how I have them insured.

Wondering how to insure them? If you think homeowner’s insurance is enough, you’re wrong and will likely leave yourself open to liability. Whether you plan to self-manage or hire a professional property management company being adequately insured is key.

Casualty Coverage

This is your typical coverage on the property which covers against fire and other property loss issues. Insuring the full value of the structure is pertinent, and you may want to seek an insurance company that provides guaranteed replacement cost. This allows peace of mind that in the event of a total loss your property will be restored fully.

Commercial Liability

This coverage provides liability insurance for general business risks. Many common risks are covered including property damage, bodily injury, and medical payments. This coverage is typically utilized if a guest has an injury at your property.

Loss of Rents

In a lot of cases, most good insurance policies will also include business interruption coverage. If a loss has occurred at the property and as a result you cancel guests stays you may be able to get the loss of rental income covered by insurance.