HOA Insurance that allows STR’s?

[James4855]

Has anyone had any luck finding an admitted HOA insurance company that allows short-term rentals? This is my primary residence, and I rent it out about 20% of the year while traveling, but I haven’t had any success finding an admitted carrier. So far, underwriters are only offering non-admitted (surplus) carriers in Illinois, which are riskier and more expensive due to less regulation.

[Rebecca]

Hi @James4855 👋

Thanks so much for asking your question here on the Community Center. Would this need to be a local insurance company, or can it be national?

Are you part of a Local Host Clubs and tried asking there? 

[Helen3]

You'd need home insurance for STRs rather than HOA insurance @James4855 

[Wendy-May0]

That is a really frustrating spot to be in, but it is completely common when you mix a Primary Residence, an HOA, and STR use. You are right to worry about those surplus lines carriers.

Why You Only See Non-Admitted
The main issue is that no admitted carrier (like State Farm or Allstate) wants to cover the commercial liability risk of short-term renting, as it violates their standard policy assumption. The non-admitted (surplus) carriers are the only ones willing to take that specific niche risk.

Your Best Options (Hybrid Policies)
Since you only rent 20% of the year, you need a carrier that offers a Hybrid Policy or an Endorsement that attaches commercial cover to an admitted home policy.

For Illinois, your best bet is checking brokers who work with the STR specialists like Proper Insurance and CBIZ (formerly NFP). While they often sell surplus line products, they also have the best access to any admitted carriers offering that crucial Home-Sharing Endorsement.

Actionable Advice for Your Broker
To make sure your broker finds the right thing, specifically ask them for:
* An admitted carrier that provides an Incidental Business Use Endorsement or Home-Sharing Endorsement.
* Proof that the policy specifically covers the short-term commercial liability required by your HOA.

Did your HOA bylaws require you to carry a specific minimum liability amount?