When you are buying a rental property in an LLC and want the flexibility to use it as an Airbnb or short-term rental, the cheapest landlord quote is rarely the best answer. The better question is which carrier structure actually fits the ownership, the rental use, the liability need, the replacement cost, and the lender expectations. This is a real comparison of five options for an LLC-owned single-family rental: Openly, Steadily, Liberty and Safeco, Travelers, and OBIE through Hadron. The goal is not to crown one carrier. It is to show how different policies solve different parts of the same problem.
The real question
For this kind of property the question is not who is cheapest. It is whether the policy can insure a single-family rental owned by an LLC, allow short-term or Airbnb use, provide enough liability, and cover the building at a realistic replacement cost. That means checking several moving parts: whether the LLC is the named insured or only added to a policy written to the individual, whether the policy allows short-term rental use, whether liability is $1M on the primary policy or $500,000 primary plus a separate excess, whether the dwelling limit follows the carrier’s replacement cost estimate, and whether ordinance or law, water backup, and loss of rents are included. A quote can look great until you realize the insured name is wrong or the short-term use is unclear.
Quick comparison
| Carrier / program | Approximate annual premium | Liability structure | Entity fit | Short-term rental fit | Best use case |
|---|---|---|---|---|---|
| Openly | $1,010.95 | $1M on the primary policy | Individual named insured, LLC added | Home-sharing shown 91 to 180 days/yr | Strongest broad primary coverage |
| Steadily | $991 landlord + $255.37 excess = $1,246.37 | $500k primary + $1M excess | LLC named insured | Rental structure; confirm STR eligibility | Cleanest LLC + separate excess |
| Liberty / Safeco | $1,042 paid in full / $1,104 annual | $500k primary | Individual and entity shown | Short-term rental: yes | Explicit STR wording, lower deductible |
| Travelers | $995 | $500k primary | Individual named insured | Home-sharing endorsement shown | Lowest premium |
| OBIE / Hadron | about $1,091 | $1M primary | Individual named insured | Home-sharing included | Specialty investment option |
How each one solved the problem
Openly was strongest on the main policy: $1,000,000 liability built into the primary policy, guaranteed replacement cost up to $5 million, $50,000 personal property, $50,000 loss of use, replacement cost roof settlement, and home-sharing shown for 91 to 180 days, at about $1,010.95. The caution is the ownership structure: if the property is deeded to an LLC, confirm whether the LLC is the named insured or only added as an additional insured before binding.
Steadily matched the requested structure most cleanly: the LLC as named insured, $540,000 dwelling, $54,000 ordinance or law, $500,000 premises liability at $991, paired with a separate excess policy at $255.37 for a $1,000,000 single-loss and $2,000,000 aggregate limit over the underlying liability, about $1,246.37 combined. The caution is to confirm short-term rental eligibility, the deductible, and that the excess is broad enough, since excess liability is not always the same as a broad commercial umbrella.
Liberty / Safeco was a strong middle ground: $520,800 dwelling with 25% extended replacement, 10% ordinance or law, $20,000 water backup, a clear “short-term rental: yes,” $500,000 liability, a $1,000 all-perils deductible, at about $1,042 paid in full. The main limit is the $500,000 liability, which many short-term owners would supplement with excess.
Travelers was the lowest premium at $995, with $532,000 dwelling, $500,000 liability, and a home-sharing host activities endorsement. The trade-offs were the $500,000 liability, only $2,000 of furnishings, an individual named insured to confirm against the LLC, and confirming short-term use is acceptable.
OBIE / Hadron was a specialty real estate investment option at about $1,091, with a $561,000 dwelling, $1,000,000 primary liability, $40,000 personal property, $10,000 water backup, and home-sharing included, with a 25% minimum earned premium to understand. It is attractive when a buyer wants an investment program with $1M primary liability.
Openly vs. Steadily, the key call
This is the most important comparison in the group. Openly may be the better coverage package, with $1M liability on the primary policy and guaranteed replacement cost up to $5 million. Steadily may be the better structure, written with the LLC as named insured and a separate $1M excess over the $500,000 landlord liability. If the buyer cares most about strong primary coverage, Openly may win. If the buyer specifically wants the policy in the LLC’s name with a separate excess layer, Steadily may win.
The liability question and the dwelling limit
There are two common ways to solve liability: $1M on the main policy, or $500,000 primary plus $1M excess. They are not always the same, so ask what the excess follows, whether it applies only to premises liability, whether there is an aggregate, and whether it is truly an umbrella or excess over a specific exposure. And do not be surprised when the dwelling limit comes back higher than requested. Carriers use replacement cost, not market value or loan amount, so a $400,000 request landing in the $520,000 to $561,000 range is normal and protects replacement cost settlement.
Questions to ask your advisor
- Is the LLC the named insured, or only added to a policy in my name?
- Does the policy clearly allow short-term rental use?
- Is liability $1M on the primary, or $500k primary plus excess?
- Is the dwelling limit set to replacement cost?
- Are ordinance or law, water backup, and loss of rents included?
The bottom line
For an LLC-owned Airbnb or short-term rental, do not shop only for the lowest premium. Openly looked strongest for broad primary coverage, Steadily for the LLC-named-insured plus excess structure, Liberty and Safeco for explicit short-term wording and a lower deductible, Travelers on price, and OBIE as a specialty investment option with $1M primary liability. The right answer depends on what you value most. If you are buying a rental in an LLC and want short-term flexibility, have the policy reviewed before closing, while you can still fix the named insured, the liability structure, and the rental-use language.