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5770 Views 12 Replies Latest reply: Jul 29, 2013 4:13 PM by brlrcrmt RSS
New Member 2 posts since
Jul 31, 2011
Currently Being Moderated

Jul 31, 2011 3:04 PM

special insurance?

I am new to VRBO and was wondering if I need any special type of insurance on my rental property.  Wondering especially about liability.

Thanks.

  • New Member 3 posts since
    Jul 31, 2011
    Currently Being Moderated
    Jul 31, 2011 3:21 PM (in response to missmaggie)
    special insurance?

    When you bought your home, did you buy a property insurance policy.  It should be covered by your insurance if so.

  • ttaylor0 Active Contributor 425 posts since
    Apr 1, 2011
    Currently Being Moderated
    Jul 31, 2011 7:32 PM (in response to missmaggie)
    special insurance?

    It is very important that you call your insurance agent and ask about "short term" rentals. I was with State Farm and they told me that they do not cover a house if it is being used as a short term rental. I think you that you think everything is all right, but if a guest files a claim against you, you could be in trouble. Take the time to make one phone call and find out for sure.

  • Contributor 145 posts since
    May 12, 2011
    Currently Being Moderated
    Jul 31, 2011 9:31 PM (in response to missmaggie)
    special insurance?

    ttayloer0 is right when Chub found out we were using our homes as a vacation rental than cancelled us. We had a real problem finding insurance finally went with LLoyds of London at triple the annual premium we were paying. One of our homes actually increased from $5600 to $19,000 which was shocking!

  • New Member 3 posts since
    Jul 31, 2011
    Currently Being Moderated
    Aug 1, 2011 10:50 AM (in response to missmaggie)
    Re: special insurance?

    That is really surprising, because I just bought a vacation rental, told State Farm I am planning to Vacation rent my property and they told me that this insurance covers it.  I have $1000,000.00 cover for personal liability and I paid just $2000 for my policy.  Maybe I should call them again to verify.  My management agent is also covered under the same policy, as I had to add her, so they definitely know that this is a vacation rental property.  I am getting nervous, I will call again and make sure we are not getting our wire crossed.

    • New Member 10 posts since
      Feb 24, 2011
      Currently Being Moderated
      Aug 3, 2011 11:02 AM (in response to azzosster)
      Re: special insurance?

      You are right to check again, Azzosster.  You should do it via email, document clearly that you intend to use for 'short term vacation rentals' and then ask them to check with their underwriters and respond to you in writing.  State Farm specifically excluded "Excess Residential Rental Liability" from my umbrella liability policy when I pushed them in writing.  Trust nothing your agent tells you verbally until you see it in writing.

  • swiss-house Contributor 260 posts since
    Jul 6, 2011
    Currently Being Moderated
    Aug 3, 2011 6:43 PM (in response to missmaggie)
    Re: special insurance?

    We're with State Farm too (over 20 years), and they had no problem setting up the house for vacation rentals.  The policy is a personal policy for business use, and covers the building only, not the contents (so we would be out for the cost of furnishings if there was a fire).  They could not include it under our personal liabilty umbrella, we had to have a separate rider for that, but it wasn't that expensive.  Our agent took care of everything for us (it helps that we're in a tourist region where this is not uncommon) and it came out with a very reasonable price.

     

    Tom C.

    www.poconoswisshouse.com

    Like us at:

    https://www.facebook.com/Pocono.Swiss.House

    • New Member 6 posts since
      May 14, 2012
      Currently Being Moderated
      May 14, 2012 6:23 PM (in response to swiss-house)
      Re: special insurance?

      You need landlord's insurance.  I was with State Farm.  I went with Foremost, who is the largest "specialty" insurer.  My policy covers $30,000 replacement, $500,000 liability, $25,000 contents, water backup, $1,000 deductible, in northern virginia near the pentagon, $1,285 a year.

  • ttaylor0 Active Contributor 425 posts since
    Apr 1, 2011
    Currently Being Moderated
    Aug 3, 2011 9:23 PM (in response to missmaggie)
    Re: special insurance?

    State Farm told me that if I rented the house over 30 days at a time, then they would cover it, but if I rented it short term, (week or so) at a time then they would not cover it. Just thought I would muddy the water just a little bit more. Oh, I went with Lloyds and it was $10 cheaper than state farm for $1,000,000 in liability insurance instead of $300,000 that I had with state farm.

  • New Member 20 posts since
    Apr 14, 2012
    Currently Being Moderated
    May 15, 2012 9:13 AM (in response to missmaggie)
    Re: special insurance?

    I think it's time to resurrect this conversation. I am struggling to find what I consider to be a reasonable quote for a short term rental condo in So Cal.

     

    State Farm also told me if I rented less than a month at a time they would not cover me.

    The only coverage I have been able to find on a short term rental is $1400 a year which compared to what I currently pay is horrendous.

     

    Any advice from anyone?

    • New Member 6 posts since
      May 14, 2012
      Currently Being Moderated
      May 15, 2012 12:00 PM (in response to bob-n-jo)
      Re: special insurance?

      A policy that covers a short-term rental will definitely be higher than a normal homeowners policy because the risk is higher to them due to the many groups of renters.  Try Foremost.  Our townhouse is near the Pentagon in Virginia.  We paid $1,285 for a policy that gives us $300,000 replacement, $500,000 liability, rental loss coverage, and other various small coverages, $1,000 deductible.

  • brlrcrmt New Member 5 posts since
    Jan 25, 2013
    Currently Being Moderated
    Jul 29, 2013 4:13 PM (in response to missmaggie)
    Re: special insurance?

    You need commericial liability. On a regular homeowners you only have personal liability. That's for if you do something to someone personally. Like getting in a car wreck. If someone gets hurt at the house they are PAYING you to stay in and they try to sue you, personal liability doesn't cover you. You have to have commercial liability.

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