All Forum Posts by: Stephan Garcia

Does anyone have a list of all companies that specifically provide STR insurance?

@Kevin Koone , @Ruth Blue

Thank you both for the feedback. I try to do a lot of research before taking an action but I've looked around and the insurance companies don't really seem to know what to do with it. I have had a few reps suggest putting an addendum to the policy that would cover STR issues but it's full holes that would create exposure.

I did have a positive experience with Proper and the quotes weren't to out of range that would eat into profitability. I did not like Steadily for the market I'm in as they didnt cover this region then they wanted to shop/broker my information around to third party insurers without stating that they would do that, I did not want them to do that for a host of reasons but overall it gave me a bait and switch vibe. They seemed like lead generators for other insurers and that would probably also mean that they would get paid for each policy that signs up which could also mean that they get paid through higher premiums charged to the insured party.  

For the types of properties we are looking to acquire, I think we would go with Proper and even if it a bit more coverage than needed, I would rather be over insured than under. There is just too much that can go wrong...

Thanks all for your feedback!

@Michael Porche Thank you for the feedback on all of the points/tips and that is definitely part of my DD when looking a the markets we want to be in. I was also able to find some reports from market research companies but they're crazy pricey and really not worth the cost as we are not at scale yet. I would add that Airbnb has a luxury specific subdomain (https://www.airbnb.com/luxury) that I found to be incredibly helpful when applying the tips you provided above. 

I'm definitely open to connecting with you and anyone else in the community.Hit my up directly and I will send my contact details. 

Thank you guys! 

Hello All

We are in the process of acquiring properties for use as STRs. When it comes to insuring the properties, I had been doing some research trying to understand the types of insurance these types of properties should have. Here's what I have found:

1. I can take out a typical home owner policy and add an addendum to cover for short term rentals but it may have some holes in it. 

2. Airbnb can cover some those holes with their policy but that's only up to $1M, that would be an issue if the property was completely destroyed by fire or something a guest may do. 

3. I came across a company called Proper Insurance, they are backed by Lloyds and have an STR specific homeowners insurance product, has anyone heard of them? Are they or their policies legitimate? Has anyone heard of any similar companies that offer policies specific to STRs?

Thank you for your feedback in advance. 

@Jaron Walling Yes, our properties have most of if not all of the same features. We are targeting a much more higher end user and price point. I did run reports on all of the major platforms and averaged them out to make a decision on the economics of the deal/properties/location and it all works. As far as PM, we are building out a full hospitality platform and in the short term, since these locations are relatively close we will PM until we get to the point where the business can afford a full time internal PM. Based on the economics and model we are building a PM company just doesn't bring the value we need to hit our targets. Also, this is a training ground to develop and perfect our operational skillset for managing multiple assets internally. We can take that process, document it and replicate when we begin expanding and hiring. 

Do you use a PM? 

What I wanted to really understand is besides, AirDNA, Mashvisor, Rabbu, DealCheck etc which are all great tools for analysis of a single property, I wanted to get a market report specific to the luxury segment/demographic of STRs. 

Your cabin sounds great btw - would love to check it out if you have a link? I will share ours once we activate the first two locations upstate NY as well.  

thank you for your reply and feedback!

Hi everyone

My partner and I are looking to develop a hospitality brand that is looking to encompass homes, villas and resorts. We started in 2021 and raised capital to buy land upstate NY and further secured development capital (debt/equity) build the first resort project. This got stalled due to many reasons but primarily seller pulling back on our offer 4x and entitlements in other regions being a massive hurdle. We have decided to look for acquisitions of distressed resort type businesses that can be elevated to the level we need for our venture. 

While on the hunt for a resort acquisition, we decided to look at the short term rental market but on the higher end side in areas upstate NY and the Hamptons. However, while there is a ton of data on short term rentals I am having a hard time finding good research on the luxury segment of the market. We are currently putting offers on properties starting at or above $1M. 

So, my question to anyone that may be able to point me in the right direction or offer some insight is:

1- is there any specific places I can look to find quality data on the luxury STR segment of the market. Ideally, just want to understand how that segment/demographic is performing when compared to the lower end price points.

2 - how should a new operator think/prepare for operating in a highly seasonal market?

3 - Our goal is to build a Hospitality brand, I think we will have the backing for the different levels (homes, villas & resorts) but is there any upside/downside to that when it comes to STRs?

Look forward to being a part of this community and love the knowledge base and how supportive I have seen everyone being in the forums. 

Connect soon

Stephan