Warning to Aspiring about Insurance

[Breakfast Diva]

One of my duties for an organization I'm in is to inspect new member's b&b. Yesterday I did an inspection of a very lovely 2 room b&b that has a new owner, purchased 8 months ago. The owner is running into a major stumbling block. She can't get b&b insurance! The previous owners thought incorrectly that their home owner's insurance would cover. WRONG! If you don't have commercial insurance, you will not be covered if something happens. The new owner has home owner's insurance and had no idea there was a problem.
Now the owner is attempting to purchase b&b insurance and no one will cover her. They say it's because both she and the property has no history and they want 2 years b&b experience.
So if you are thinking of starting your own b&b (legally) or are purchasing an existing one, make sure you investigate this insurance dilemma before you start.
My association is doing all we can to give leads to this new owner, but it's going to be tough and VERY expensive.

 

[Lee2014]

Wolfe Innkeepers Insurance. They also cover boats, RVs, pools, etc. that most insurances won't touch.

 

[gillumhouse]

See if Erie insures in your area. They took me when I dumped Wolfe because of $$$$.

 

[Sunshine]

Farm Bureau insurance might also cover.

 

[Breakfast Diva]

Wolfe Innkeepers Insurance. They also cover boats, RVs, pools, etc. that most insurances won't touch..

She's trying them right now

 

[Breakfast Diva]

Farm Bureau insurance might also cover..

Farm Bureau insurance might also cover.

Turned down

 

[Breakfast Diva]

See if Erie insures in your area. They took me when I dumped Wolfe because of $$$$..

not in our state

 

[JimBoone]

See if Erie insures in your area. They took me when I dumped Wolfe because of $$$$..

We use Erie for our tiny mom and pop motel

 

[EmptyNest]

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?

 

[Copperhead]

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?.

Yes, in a hand full of states. They are giving it a test.

 

[Copperhead]

This problem is not just for new B&B's!
A few years ago Wolfe sent me my renewal policy. Problem was, the insurance no longer covered wind and hail and the renewal was only a couple weeks away.
It was nerve racking to find coverage. I came here for suggestions too.
Each year now I am dreading the renewal process as this has now happened several times.
And when I do find coverage it is much higher than the time before.

 

[Breakfast Diva]

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?.

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?

She was told by the previous owners who thought they were covered that all she needed was her homeowners plus some sort of rider. She got that from her AGENT who must have been a lame brain. When she applied for membership to the state association, they took a look at her policy submitted and they had to inform her that even the special policy she had would not cover any commercial liability.
By the way, another lesson to aspirings...it's only when she went to the state association's conference did she learned "I DIDN'T KNOW WHAT I DIDN'T KNOW".
It's so important to go to a conference or aspiring seminar!

 

[Breakfast Diva]

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?.

Yes, in a hand full of states. They are giving it a test.
.

Yes, in a hand full of states. They are giving it a test.

And our state is not one of them

 

[gillumhouse]

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?.

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?

She was told by the previous owners who thought they were covered that all she needed was her homeowners plus some sort of rider. She got that from her AGENT who must have been a lame brain. When she applied for membership to the state association, they took a look at her policy submitted and they had to inform her that even the special policy she had would not cover any commercial liability.
By the way, another lesson to aspirings...it's only when she went to the state association's conference did she learned "I DIDN'T KNOW WHAT I DIDN'T KNOW".
It's so important to go to a conference or aspiring seminar!
.

When I opened 20 years ago I called my homeowners agent to ask, "How much more will liability cost me." His reply was, "Do you really think you are going to need that? Who is going to come to Shinnston?"
After I finished blowing my stack mentally I asked him to check on it. Three years later, I decided I was no longer going off "half-cocked" and asked for a new agent. The new agent checked with Corp & that is when I discovered I had NOT been insured for the first 3 1/2 years of operation.
Went with McAbee until Wolf bought them out. Wolf for a few years until it went to over $2500 for my 3 rooms in WV. Then bless them, found Erie.

 

[Silverspoon]

Our town requires that a B+B submits a certificate of liability insurance before it issues a business license each year.
We had to forgo wind, flood, earthquake, and terrrorism insurance and chose a relatively high deductible ($5,000) to be able to afford insurance for our 3 room B+B. There was one year, about 10 years ago, when no one would cover B+B's in our area. Now, we at least have liability coverage and some coverage for catastrophic events....of course most catastrophic events in our area are caused by wind and water so we just hunker down and keep our fingers crossed every time there is a hurricane on its way!

We use a local agent but our business policy is underwritten through Lloyd's of London.

 

[Anon Inn]

OH WOW...don't people realize they must dot all the i's and cross the t's BEFORE they actually purchase???
Didn't someone post something recently about AllState now offering insurance to Air BnB folks?.

All state only in some states and as a test. I see others are covering for Air rentals. Would be worth googling for this.

 

[Breakfast Diva]

Here's the thing about our state. No permitting, licensing, food handling certification or inspections are required for a 1 or 2 room b&b. It's ridiculous. What's the difference between a 2 room being full with paying guests and a 4 room having 50% occupancy for that day? Oh, and I had to spend $10,000 to put in everything required for a commercial kitchen when I wanted to serve dinners, but a 2 room b&b doesn't have to do a thing and can legally do it and charge money for it.
We tried to change the law. A few years ago a bill went into our state senate. It sat there because we didn't have a lobbyist. Another reason it just there is we had no idea that Air had already been in negotiations with our major metro city to open up corporate offices. Hmmm conflict of interest ya think?

 

[Anon Inn]

We insure through Countrywide. Our agent is in your state. We did have to join the Farm Bureau, but doing this allowed a rider to cover guests, farmer's market sales and such. ( I used to sell pies ) Farm Bureau $20/year.
Oops. Should have read the rest of the thread.
I did see an agency covering Air rentals on my FB feed. Can't remember the name. Some such may do the trick.

 

[gillumhouse]

Here's the thing about our state. No permitting, licensing, food handling certification or inspections are required for a 1 or 2 room b&b. It's ridiculous. What's the difference between a 2 room being full with paying guests and a 4 room having 50% occupancy for that day? Oh, and I had to spend $10,000 to put in everything required for a commercial kitchen when I wanted to serve dinners, but a 2 room b&b doesn't have to do a thing and can legally do it and charge money for it.
We tried to change the law. A few years ago a bill went into our state senate. It sat there because we didn't have a lobbyist. Another reason it just there is we had no idea that Air had already been in negotiations with our major metro city to open up corporate offices. Hmmm conflict of interest ya think?.

Having dealt with a Legislature I can tell you flat out - you cannot buy your Legislator BUT you MUST buy your legislation. No paid Lobbyist - no Bill passage.
We have a Hospitality & Travel Assoc that is the industry lobbyists - they helped, but we still had to hire a lobbyist (firm owned by the director of the HTA - no comment. We got half of what we were trying for. Better than nothing.).