Pinellas County Short Term Rental Insurance - 5 Keys To Consider When Buying

Dated: January 21 2022

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1.
What should you select for your minimum nightly stay and how will this affect your rate?

Insurance companies price insurance based solely on the risk they assume. Typically, lower minimum stays means more people in and out of a home, which means higher risk of injury, theft, damage, etc. Thererfore, this increased risk limits the number of insurers and investors will often have to select a company that has a higher annual premium. 

In general, short-term rental insurance rates are lower if an investor selects a minimum of three to seven days. Insurance rates with these minimum stays are typically not substantially higher than the rate on an annual rental property, and still allow for much higher gains in the short term space. 

2. How will a pool affect your short-term rental insurance?

Having a pool in your short-term rental will not lead to a large increase in your annual premium. However, if there is a slide or diving board, that is where liability gets complicated. Ancillary pool additions will usually be excluded or need a separate, stand-alone, liability policy that is more expensive. 

Short-term investors will also want to check local code to make sure the pool meets safety requirements. Usually, this includes a fence, or some form of child protection for the pool itself as drowning is a high-liability item. 

3. Should you get an umbrella policy?

Umbrella policies cover any claims that are not covered by your homeowners' insurance, and can serve as a backstop if renters pierce your homeowners policies or LLCs. While they are not perfect, these policies are highly recommended no matter how many properties you own.

4. How much should your umbrella insurance policy cover?

A sufficient umbrella policy should cover the value of all assets owned by an investor, and an additional surplus to account for the next 2 years of appreciation on the assets. This is useful to avoid having to update coverage terms annually. 

5. Should you get a tenant protector plan?

A tenant protector plan allows the homeowner to purchase additional coverage to insure liability for the tenant, as well as their belongings.These policies are recommended as another safety net in the event that a tenant has an issue at your property and files a claim. 

DISCLAIMER: We are not insurance agents and all information in this blog should be verified and discussed with a licensed insurance agent. This information shall be deemed informational in nature, and in no way a direct recommendation of coverage. 

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Troy Nowak

Troy Nowak is an experienced agent and investor specializing in short-term rentals, multifamily investing, and retail listings in Pinellas, Hillsborough, Manatee, and Pasco County.....

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