Home About
Services
Accelerator Course Mentorship Program Find a STR Agent Help me buy/sell a STR in Wisconsin
Contact

45. Airbnb Insurance 101: Must-Have Coverage for STR Hosts

Airbnb Roadmap Accelerator Course

  • Want to learn how to launch an Airbnb?: Every dollar counts when it comes to investing. Save $50 with the Promo-code: 5STARPODCAST

Episode Summary

Insurance can feel like alphabet soup, until something goes wrong. In this interview, I sit down with Nick Sommer of Country Financial (and one of my buyers!) to break down exactly what short-term rental owners need: how to structure coverage for STRs vs. primary/secondary homes, must-have endorsements, loss-of-income realities, and why an umbrella policy can be the difference between a scare and a disaster. Nick also shares the personal house-fire story that led him into insurance and the simple annual habit that can save you months of headache during a claim.

Key Takeaways

  • Match the policy to the use. Don’t insure an STR like an owner-occupied or long-term rental—claims can be denied if the use doesn’t match the application.

  • Four core buckets: dwelling (rebuild cost ≠ market value), personal property (replacement cost, not garage-sale value), liability (aim higher than default limits), and loss of income (raise limits for STR-level revenue).

  • Critical endorsements for hosts:

    • Sump pump/sewer backup (not standard)

    • Service line coverage

    • Flood insurance is separate

  • Loss of income is evidence-based. Keep AirDNA/comps, booking statements, and P&Ls to substantiate payouts.

  • Umbrella = legal shield. Choose limits that reflect your net assets (homes, vehicles, retirement, cash, other properties). It covers defense costs and many personal-liability scenarios.

  • Document everything. Once a year, do a whole-home video walkthrough and maintain a furnishings spreadsheet with links, prices, and statuses.

  • Choose financially solid carriers. Check claim strength/ratings (e.g., AM Best) and prioritize service over “cheapest quote.”

  • Get it in writing. Confirm coverage answers via email; recordings aren’t yours, emails are.

Why Listen to This Episode?

Because “I have insurance” isn’t a plan. If you’ve ever wondered whether your STR is actually covered for what you do, hot tubs, guest injuries, burst pipes, tornadoes, income loss—this episode turns jargon into plain English and gives you a checklist to bring to your agent.

Mentioned in the Episode

  • Country Financial – Nick Sommer (Licensed in IL, WI, KS)

  • Want to learn how to launch an Airbnb?: Every dollar counts when it comes to investing. Save $50 with the Promo-code: 5STARPODCAST
  • Connect with Me on Instagram: Follow me @airbnbroadmappodcast for behind-the-scenes

Let’s Connect

Thinking about insurance for your short-term rental? DM me on Instagram at @theairbnbroadmap with your questions or share your progress! I’d love to cheer you on and help you out.

Work With Me

  • Buy/Sell in Wisconsin with Front Porch Realty (powered by Real Broker LLC).

  • STR Coaching: Airbnb Roadmap Accelerator (self-paced) + Mentorship options.

  • Agent Referrals: I’ll connect you with STR-savvy agents statewide.

Chapters

  • 00:00 Recording setup + why this topic matters

  • 02:11 Nick’s background & the house-fire that changed everything

  • 06:07 Home policy types (primary, secondary, rental/STR, condo)

  • 08:14 STR must-haves: liability, rebuild cost, endorsements

  • 11:25 Loss of income for STRs (how payouts are calculated)

  • 14:03 Replacement cost for furniture & annual documentation

  • 16:41 My furnishings spreadsheet system (order → received)

  • 20:24 Get coverage answers in writing (E&O and why it matters)

  • 21:20 “STR-specific” insurers vs. traditional carriers—what to compare

  • 27:42 Umbrella policy explained (and how to size limits)

  • 31:21 Real-life slip-and-fall & weather scare—why we upgraded

  • 36:26 Annual reviews: as life changes, so should coverage

  • 38:40 How to contact Nick + final tips