Homeowners insurance that covers Vacation rentals

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Boats day
Posts: 59
Joined: Thu Mar 06, 2014 11:39 am

Homeowners insurance that covers Vacation rentals

Post by Boats day » Sat Jul 15, 2017 12:52 pm

I was considering doing short term vacation rentals in a property in MN.

My State farm agent said she could not add this on and I would have to get commercial insurance which she can't sell. She said she could write a policy for long term year round rental
But in State of MN they don't cover vacation rentals.( they do offer in few states BUT NOT MN.)

I have all my vehicles, 2 houses boats and umbrella coverage thru them.

Does anyone know what companies offer home owners insurance with a short term vacation
Coverage that can bundle all coverages?.

Thanks
Boataday

IMO
Posts: 704
Joined: Fri May 05, 2017 6:01 pm

Re: Homeowners insurance that covers Vacation rentals

Post by IMO » Sat Jul 15, 2017 1:33 pm

I looked into this recently as was considering doing a VRBO.
Below is the basic email/copy & pasted that I received. I did not include my actual quoted policy. I removed the sales agents information as I believe that varies by region.

What is interesting that I did not think much about was things like if you provided a couple bikes, etc for renters to utilize. Seems policy does cover that type of risk.

Policy is more expensive than normal homeowners, and I strongly suspect my umbrella insurance would not apply (for when using property ourselves) but I did not look into that.


------------------------

Thank you for contacting Proper Insurance®, and I appreciate your time on the phone. Please find attached your detailed insurance proposal from Lloyd’s of London. If you have questions about anything while going through the proposal, please let me know.


Proper Insurance Services, LLC is proud to have earned an A+ rating with the BBB. See Here.


If you are ready to purchase the policy, click this link below:

CLICK HERE TO PURCHASE POLICY: Same Day Coverage Available. After completion you will receive an automated email via Right Signature to confirm submission. You must confirm in order for Proper to receive your application. After brief underwriting, you will receive a binding email with your evidence of insurance, EPI. After you receive this EPI, you are insured and may cancel your existing applicable insurance. Proper will also provide your EPI to any applicable parties (bank, mortgage co, property manager)

If you are interested in Excess Commercial Liability (Commercial Umbrella up to $10MM), click this link below:

Excess Commercial Liability Pricing & Binder

Commercial homeowner’s insurance for vacation rentals: Homeowners and landlord insurance policies specifically exclude coverage involving “commercial activity”. This means any property or liability claim could be denied as the result of short-term renting your property. New regulations all across the U.S. are now requiring property owners to carry commercial general liability. The Proper Insurance® policy is a comprehensive commercial policy, custom-penned by Lloyd’s of London to entirely replace your current coverage. We encourage you to read our client reviews!

Proper Insurance® covers both personal & commercial use of your vacation rental: Most vacation rental owners have “dual-use” of their vacation rental; being used as a personal vacation home and a commercial short-term rental. Because the Proper policy has no occupancy or vacancy restrictions, there is coverage in place at all times with us.

Coverage Comparison: Not all insurance is created equal, especially when it comes to short-term vacation rental properties. Beware if your current coverage states any of these following terms:
•Personal Liability (found on a homeowners form)
•Premise Liability (found on a landlords form)
•Dwelling (DP) or Landlord Policy
•Loss of Use
•Medical Pay
•Punitive Damages Exclusion
•Liquor Liability Exclusion

*If you have any these terms on your current policy, please call or email me with questions. I will take the time to explain why the Proper policy is a step above the competition, and is the most comprehensive coverage available in the U.S. today.


Proper Insurance® Policy Highlights: Designed to replace your current coverage.
◾Commercial Package Policy: coverage for building, contents, liability, and income.
◾Building & Contents: special cause of loss (all risk) with replacement cost valuation (new for old).
◾Liability: $1,000,000/$2,000,000 in commercial general liability (extends beyond premise).
◾Income: actual loss sustained business income coverage with no time limit.
◾Additional $1,000,000 in personal liability when rental “doubles” as primary residence.
◾Liability coverage enhancement for animals/pets & liquor.
◾Liability coverage extended over amenities: pools, bicycles, small watercraft, golf carts, rec area, + more.
◾Property coverage enhancement for theft and damage caused by a renter.
◾Vacancy clause removed with no standard occupancy restrictions.
◾Underwritten by Lloyd’s of London, AM Best’s Rated A.

Thank you! Call or email me anytime –


http://www.proper.insure

User avatar
ResearchMed
Posts: 9457
Joined: Fri Dec 26, 2008 11:25 pm

Re: Homeowners insurance that covers Vacation rentals

Post by ResearchMed » Sat Jul 15, 2017 4:50 pm

Boats day wrote:I was considering doing short term vacation rentals in a property in MN.

My State farm agent said she could not add this on and I would have to get commercial insurance which she can't sell. She said she could write a policy for long term year round rental
But in State of MN they don't cover vacation rentals.( they do offer in few states BUT NOT MN.)

I have all my vehicles, 2 houses boats and umbrella coverage thru them.

Does anyone know what companies offer home owners insurance with a short term vacation
Coverage that can bundle all coverages?.

Thanks
Boataday
We had two vacation rental cabins in a different state.

Our own homeowner's policy (and our umbrella policy) did not cover them at all, and we could not get insurance for them through that insurer OR get any help from our insurance agent (independent) for legal reasons (couldn't do coverage in another state).

We found an agency near the properties (in a vacation area, so lots of short-term rentals), and they covered us with two separate *commercial* policies, one for each property.
We also got *one* large commercial umbrella policy to cover us for any risks at both cabins combined.

The policies were not unusually expensive.

We had to be careful to insure ourselves personally, because although we had set up LLC's, we had to take out the mortgages in our names, so we were exposed personally if anything "happened".
We assume that most people we dealt with (renters, vendors) assumed that the LLC's provided a layer of protection for us personally, but we knew that under the general appearance (of the LLC names), we weren't truly shielded.

So we made sure that the policies covered us personally, not "just" the LLC's.

We stopped doing the rentals about 1.5-2 years ago, because we started traveling.
No more midnight calls about "I left the map you sent me home; how do I get there?" or such. :annoyed

RM
This signature is a placebo. You are in the control group.

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