New AirBnb Host in Palm Beach County, FLA: Considering installing a pool but want liability insurance

[Andrew886]

Hello Everyone,

I'm excited as my first season as a host is doing well and has been enjoyable. I'm considering installing a pool at some point between seasons. First, does anyone in South Florida have recommendations for liability insurance that goes beyond what Airbnb offers? I want to make sure I'm very covered if install a pool.

Secondly, I've done a ton of research and mining data with Wheelhouse and AirDna to see what a 3BR Pool House vs Non-Pool House generates as far as revenue. The 3BR Pool House seems to come out ahead by a good margin. I know everyone's market is different, but hoping for general feedback. Can anyone comment on this...especially Pool House owners?

No Pool	Days Available 365	ADR $391	occupancy 56%
Pool	Days Available 365	ADR $445	occupancy 69%

Thanks everyone and I hope everyone's new year is off to a good start!

[Lorna170]

@Andrew886   You need to talk to your own STR insurance company to see what they will cover in a rider or how your insurance will need to change in order to adequately cover you,  the property and guests against damages once you have installed the pool.  Do not rely on insurance from any OTA.  IMO it is smoke and mirrors.

As far as your data mining, yes, it does appear that the pool will increase your income -- however, how much are you going to have to spend for maintenance?  What is the cost of chemicals, water, cleaning, repairing pumps and heaters, etc.  What will you have to pay for a contract with a pool company to fix things ASAP when renters are screaming?  Percentage of refunds for too hot, too cold, has debris, pool guy scared me, I fell down and hurt myself, my whole family got a rash, etc. ?  Food for thought.

I looked at your property (very nice!) and may I suggest that you start with a large 6+ man hot tub?   Would the demographic that you are currently attracting "go" for a hot tub?  You may benefit as much as the house with a pool, but with less expense.

[Andrew886]

Hello Lorna,

Thanks for the detailed response and the compliments. I checked out your home and it looks amazing with that waterfall. So peacefull!

I will reach out to STR insurance this week as I know it will be a big cost. I've only found Proper Ins. so far so if anyone has other Florida ins. companies please let me know. 

I've got a spreadsheet going for additional pool costs like supplies, maintenance, and the electric bill. The math still puts me ahead a good amount each year with a 7-11% annual ROI for a pool.

You are definitely right about the added aggravation that comes along with a pool so I'm considering it all out carefully and studying how other pool homes address heating pools, waivers, etc.

The hot tub is a good idea, but my preference is a pool and 67% of my competition has pools plus this will eventually be my winter home (in my dreams) to go along with my Cape home (in my other dreams). 

Thanks for your input. It's been very helpful.