Short Term Rental Insurance in Michigan

[Malini7]

Hi everyone! I just listed my first property in Michigan and reached out to my insurance company for STR insurance quote. It was very high - double my normal home insurance! I probably should look around and was wondering if anyone had any recommendations for STR insurance companies that service MI. Thanks for your help!!

Best, Malini

[Helen3]

Yes commercial STR insurance will always cost more than domestic insurance @Malini7  but is a tax deductible cost for your STR business . 

ask on your local host group for recommendations (on FB) 

[Malini7]

Thanks Helen! 

[Wendy-May0]

That is a smart move to shop around Malini. That high quote is sadly quite common because STR insurance is essentially commercial property insurance not standard home cover. Your old policy won't cover things like guest injury or loss of rental income so you definitely need specialist cover.

For Michigan I would definitely check out Proper Insurance and CBIZ. They are the big names who really understand the STR niche and often have better rates than the general brokers. Make sure you prioritise finding a policy that gives you good coverage on loss of income.

Feel free to ask me any questions about comparing those quotes. Did your current provider give you a breakdown of what exactly was excluded from your existing home policy, like the commercial activity clause?

[Malini7]

Thanks Wendy - Our current coverage has landlord liability and loss of rents, but it seems that STR insurance may have additional coverage that I may need.  I have reached out to both Proper and CBIZ to get a quote.  Will be interested to see what additional coverage they have.

[Wendy-May0]

@Malini7 

That is great news about the quotes coming in, Malini.

The main difference to look out for will be in the Commercial General Liability (CGL) section. Your current policy covers property damage and loss of rents, but the CGL is the essential legal protection that covers the commercial activity. You would rely on CGL if a guest were injured due to the rental activity (like slipping on the patio) and decided to sue.

You should also carefully compare the Business Interruption/Loss of Income clause. STR policies usually cover a much wider range of perils than the basic "loss of rents" on a standard landlord policy.

Feel free to reach out to me and good luck with your final decision.

[Alex · Accepted solution]

Hi @Malini7!

Congratulations on posting your first property! 🎉 How long did you prepare before going live with it?

Have you been able to find any insurance companies since you posted this topic on Tuesday? If not, and following Helen's advice, I'm sharing the link to the Local Host Clubs where you can connect and chat with hosts near you: Connect with Airbnb hosts in your area. 👈

Best, 

Alex

[Malini7]

Thanks @Alex . I have connected with some host clubs and they have provided great suggestions.  Looking into them now.