North Carolina STR Insurance?

[Jeremy731]

Any recommendations? I got a quote from Proper, but I have concerns after reading numerous and consistent complaints about how much they increase premiums each year. The policy itself checks all the boxes, but I want to shop around because they are expensive (and rapidly get more expensive).

Thanks in advance.

[John5097]

@Jeremy731 I’m in SC but have used Proper for two years. They didn’t go up in premium last year, and will auto renew. When I was researching CBIZ was the only other option. Their quote was the same price. I don’t consider it expensive, but that can depend on the deductible you choose, as the highest deductible is a lot less expensive. Before I started I thought there would be more damages but so far none, except broken pull out sleeper I managed to repair myself.   I went with highest deductible which I always do. I’m also in a unique situation in both a flood zone and wind zone so insurance for those are generally done through the state and federal government as separate policy that’s 10 times more expensive. 

[John5097]

It did go up less than $100 over 3 years. Not inexpensive and everything adds up, but as a host you can pay more than 50% in taxes right off the top. 15% social security, 14% local and state accommodation tax, then regular federal and state income tax. Plus Airbnb fee so host have about 35% left over before insurance, maintenance, furniture, replacing linens, etc. My property tax also went up, as that part of the STR space is taxed as a commercial space, and have to pay business licensing fees and application fees for both the city and fire department and they all go up a lot every year. And thats if ABB is actually collecting and paying the all the local and state taxes. So in that context the insurance company seems like the good guys. ABB is also good at keeping the place booked. But host don't make as much as some people might think and you as a host are contributing a lot to local, state and federal taxes than people might appreciate. I guess its fair to say guest are paying for all of that and host get a 25% fee. 

[Jeremy731]

Thank you! I saw others saying their premiums had doubled in a very short time. Maybe the market is more mature now so that's less necessary?

[John5097]

@Jeremy731  I just received my renewal email in December 5th where it will auto charge and renew on Feb 1st and has only gone up less than $100 over three years. Maybe theses others made a claim? The option for wind insurance would have doubled the rates but I was already in a wind zone. The first year that happened normal homeowners insurance went way up. I’m happy with Proper as they cover everything and my city requires million dollars commercial liability which is included as well as a bunch of other stuff. Compared to basic instsnce without additional hazard it is more but STR is higher risk. 

[Jeremy731]

I just spoke with proper and was told that they did have pretty consistent 10% rate increases each year (with one year being 30%), but did not have one last year and they think rates have stabilized. I hope that's the case.

[John5097]

Good to know, mine has gone up less than 10% in three years.