The main insurance companies that I know of right now (for vacation rental properties) are ...
* Foremost Insurance, which is owned by Farmers Insurance ... Homeowner's insurance, for people who own and live in the property and also manage a vacation rental ON SITE. This is the insurance we currently have, through an independent agent. It seems pretty comprehensive, as it is difficult to find TRUE homeowners' insurance (not commercial insurance), which is valid for a vacation rental. The policy quoted for us was about $4100 with a $2500 deductible. We purchased coverage for an annual premium of $4300 with a $1000 deductible from Foremost. However, we are shopping around to see if there is a less expensive policy that will still provide us with adequate coverage.
* Propel National Vacation Rentals Association (NVRA) insurance, which is commercial insurance specifically for vacation rental properties. If you are a homeowner living on site, you need to purchase additional renter's insurance (typically provided by Safeco) in order to cover your personal belongings and personal liability which is not associated with the vacation rental. Marlene Esparza with Propel Insurance. Her number is 206-262-4348. She is on the West Coast (Seattle / Pacific time). With both renter's insurance for our personal liability and personal property from Safeco, as well as the NVRA insurance, the quote was about $2200 with a $2500 deductible for all claims (except I think there might be an extra $$$ deductible for leaking water claims). Much cheaper than the Foremost / Farmers option ... but it's not as comprehensive, since it's not a full homeowners package. Marlene was very knowledgeable and great at answering questions via phone and e-mail and sending me all the documentation I was requesting.
* CBIZ, which offers a commercial policy ... Innkeepers insurance, designed especially for homeowners who live in the property and also rent out part of it or even most of it, as a vacation rental and/or bed-and-breakfast type of property. Call Bill Carr, 800 488-1135, or bill.Carr@cbiz.com Note that Bill is on the East Coast (U.S.). I was worried about the time difference, since I'm out in California, but Bill was great to talk to and very easy to reach via phone or e-mail. Like Marlene, Bill seems to be very thorough and a wonderful person to work with. The annual CBIZ premium quoted for us was about $2500, plus a $240 safety inspection fee which is only incurred during the first year. CBIZ is a commercial policy, too, provided by Century Surety, but ... it is reportedly more comprehensive than the NVRA insurance. Interestingly, CBIZ offers a ZERO deductible for liability claims. There is a $2500 deductible for claims regarding damage to property.
I am still shopping around, investigating and looking into the various options. I have been on vacation for the past couple weeks, so I had to put this on the back burner. Now that I am back from vacation .. if there is a better policy for us than the one we currently have, we would like to switch as soon as possible. I will give the Farmers agent listed above a call, as well!
I feel that something in the range of $2500 per year is much more "reasonable" for our property, compared to the $4300 we are paying now. To give some perspective, our previous homeowners policy for a 2-unit building (without vacation rental) was about $1300. Yes, there's extra risk with a vacation rental, compared to a long-term renter, but should it be MORE THAN DOUBLE? I don't think so ... which is why, I think, I sort of had $2600 MAXIMUM as a "reasonable" number, or what "feels right." I'm glad we are FINALLY finding some quotes that are more within the "reasonable" range.
(We've been trying to resolve this for several months now ...)
Seek, Ask, and Share in the Vacation Rentals Community
