Protect your Central Florida STR investment with the right coverage. Learn what’s actually required, avoid costly gaps, and see why many Florida hosts overpay for inferior protection.
Summary stats
- 78% of STR hosts have coverage gaps
- $1,000,000 is a smart minimum for liability
- 30% average savings when coverage is placed correctly
Quick navigation
- Florida STR insurance requirements
- Admitted vs. surplus lines
- Essential coverage blueprint
- Common mistakes to avoid
- Cost factors and savings tips
- Frequently asked questions
- How to get help
Critical alert
Most hosts we onboard were either insured on a standard HO-3 that excludes short-term rental activity or were overpaying in the surplus lines market even though they qualified for better admitted coverage. Don’t let this be you.
Florida’s short-term rental insurance requirements: the real story
There is no single statewide statute that mandates a specific “STR policy.” Your practical requirements come from four places that work together:
- Local jurisdictions (city, county, HOA/condo)
Many require business licenses and liability insurance proof. Orlando, Kissimmee, and Davenport have specific rules. Some want additional insured endorsements naming the city or HOA. - Mortgage and platform contracts
Your lender and your host agreements (Airbnb/Vrbo) often mandate certain property and liability limits, plus additional insured wording. - Insurance policy terms
Standard HO-3 homeowner policies typically exclude short-term rental exposures. You need a DP-3 (single-family) or HO-6 (condo) that explicitly permits STR use. - Consumer protections
Florida’s admitted carriers offer FIGA protection and are overseen by the Office of Insurance Regulation. Surplus lines carriers do not provide these safeguards.
Central Florida recommendation: Target $1,000,000 premises liability with proper STR endorsements, plus loss of rents coverage. We tailor specifics to your permit requirements and property type.
Admitted vs. surplus lines: why location and timing matter
Understanding the difference can save you thousands while improving protection. Many agents default to surplus lines when admitted options exist.
Admitted carriers
- State oversight: Florida OIR approves rates and forms
- FIGA protection: Guaranty fund backs claims if an insurer fails
- Taxes/fees: Standard premium taxes included
- Claims process: Standardized and regulated
- Rate stability: Generally more predictable
- Best use: Standard risks that qualify
Surplus lines carriers
- State oversight: No prior approval of rates/forms
- FIGA protection: None
- Taxes/fees: Additional surplus lines taxes and stamping fees
- Claims process: Varies by carrier
- Rate stability: Can fluctuate significantly
- Best use: Hard-to-place or unique risks
Pro tip
Florida’s recent surplus lines reforms made placement easier, but easier doesn’t automatically mean better or cheaper for STRs. We check admitted markets first and use surplus lines only when necessary.
The STR coverage blueprint for Central Florida hosts
Coverage priorities for Orlando-area STRs: your policy should address guest risk, Florida weather, and local compliance.
Essential components
- Proper policy form: DP-3 (single-family) or HO-6 (condo) that explicitly permits short-term rentals. Do not rely on a standard HO-3.
- Loss of rents/business income: Protects booking revenue when a covered loss cancels stays.
- Adequate liability limits: Start at $1M; consider an umbrella for higher-value properties.
- Guest-caused perils: Include damage and theft by guests, including intentional acts.
- Pools and amenities: Pay special attention to pools, hot tubs, and screen enclosures.
- Water and equipment: Add water backup and equipment breakdown for A/C, pool systems, and appliances.
- Building code compliance: Ordinance or law coverage for required upgrades after repairs.
- Certificate management: Make additional insured endorsements easy for managers, HOAs, and city permits.
Florida-specific considerations
- Hurricane/named storm coverage: Know your wind deductibles and limits.
- Flood: Most STR policies exclude flood; consider NFIP or private flood coverage.
- Mold prevention: Important in Florida’s humidity, especially between guests.
- Theft by guests: Covers furniture, electronics, and items left for guest use.
The top 5 costly mistakes Florida STR hosts make
- Assuming an HO-3 covers short-term rentals. It usually doesn’t.
- Not reading exclusions. Gaps are often discovered only after a claim.
- Underestimating liability exposure. Guest injuries can be expensive.
- Ignoring local requirements. Missing certificates or additional insureds can jeopardize permits.
- Forgetting business income. A peak-season loss without income coverage can be brutal.
Real example
A Kissimmee host’s guest caused $15,000 in damage to furniture and electronics. The HO-3 policy denied the claim due to home-sharing exclusions. Proper STR coverage would have paid (minus the deductible).
Cost factors and how smart hosts save money
What affects your price
- Property location and value
- Rental frequency (full-time vs. occasional)
- Property type (single-family vs. condo)
- Coverage limits and deductibles
- Claims history
- Management style (professional management can help)
Money-saving strategies
- Bundle with auto, umbrella, or other properties
- Install monitored security and smart-home devices
- Choose higher deductibles on property coverage
- Commit to maintenance and documented safety measures
- Use professional management where it improves eligibility or pricing
Frequently asked questions
Is STR insurance legally required in Florida?
There’s no single statewide mandate, but local permits often require proof of liability insurance. Lenders also require coverage, and most homeowner policies don’t cover STR use. In practice, you should carry an STR-appropriate policy that satisfies local rules and truly protects your operation.
Can platform host protections replace real insurance?
No. Platform protections are secondary at best and have big limitations. You need a Florida-admitted property/liability policy that’s designed for STR use.
Are admitted options really available for Central Florida STRs?
Often yes, subject to underwriting (occupancy, management, condition). We evaluate admitted DP-3/HO-6 STR programs first and use surplus lines only when necessary.
What about flood insurance?
Most STR policies exclude flood. Consider NFIP or private flood coverage, especially near water or in flood-prone areas.
How quickly can coverage be placed?
With proper documentation, admitted STR coverage can often be bound within 24–48 hours. In rush situations, a temporary surplus placement may be used while we complete underwriting for an admitted option.
What documentation do I need?
Property photos, rental agreement templates, occupancy projections, permit details, and any property management info.
Get it right: professional STR insurance review
Don’t risk your investment on inadequate coverage—or overpay for surplus lines when better admitted options exist. Our Central Florida STR specialists will:
- Audit your current coverage for gaps
- Verify compliance with local permit requirements
- Shop admitted markets first for protection and price
- Set up certificates and endorsements so you stay compliant
- Support you with claims and coverage questions
Get your free STR coverage review:
singhinsurancegroup.com/get-a-quote
Prefer to talk?
Call (352) 432-1646
Learn more about our services:
singhinsurancegroup.com/services/homeowners-insurance
Service area
Orlando, Kissimmee, Davenport, Clermont, Winter Garden, Lake Buena Vista, Celebration, Four Corners, Champions Gate, Windsor at Westside, Orange County, Osceola County, Polk County, Lake County
Sources and additional reading
- Florida Office of Insurance Regulation — Surplus Lines information: floir.com/resources-and-reports/surplus-lines-search
- Florida Insurance Guaranty Association — FAQ: figafacts.com/frequently-asked-questions
- Insurance Journal — Florida Surplus Lines Reform (HB 1549) analysis (June 16, 2025): insurancejournal.com/news/southeast/2025/06/16/827921.htm
- Property Insurance Coverage Law Blog — Surplus vs. admitted market regulations in Florida: propertyinsurancecoveragelaw.com
Important disclaimer
Local permit and insurance requirements vary by city, county, and HOA and can change frequently. Always verify current rules with your jurisdiction and association. We align your policy and documentation to your specific compliance checklist.