Commercial Property Insurance
Covers the building and suite furnishings, appliances, and kitchen contents, with business income for lost weekly and monthly revenue.
How it worksLodging
Insurance for Extended-Stay Hotels
Kitchens in every suite, guests who live with you for months. Coverage matched to how extended-stay hotels really run.
One application, shopped to our A-rated carrier network. Number of offers depends on carrier appetite for your class, state, and loss history.
What insurance does an extended-stay hotel need?
An extended-stay hotel typically needs commercial property with business income, general liability, innkeeper’s liability, workers’ compensation, cyber and an umbrella, plus attention to in-room kitchen fire and water damage and to guests who stay long enough to acquire tenant-like rights. Long stays change how property, liability and removal disputes play out.
- Typical coverages
- Commercial property and business income; General liability; Innkeeper’s legal liability; Workers’ compensation; Cyber liability; Umbrella liability
- Who requires it
- Lenders; Franchisors for branded properties; Corporate accounts and relocation firms; State law (workers’ compensation)
- What drives cost
- In-room kitchens and cooking appliances; Share of guests staying 30 days or more; Housekeeping frequency and room inspections; Water-leak controls and sprinklers; Loss history
- Typical limit structure
- General liability is commonly written at $1M per occurrence / $2M aggregate per location, with property at replacement cost and an umbrella above liability.
- Where we place it
- Provident Financial Group is an independent insurance agency. Lodging risks are quoted through our agency across our carrier network. We are licensed in New Jersey, New York, Connecticut, Vermont, Massachusetts, Delaware, Maryland, Pennsylvania, Virginia, North Carolina, South Carolina, Georgia, Florida, Ohio, Michigan, Kansas, Kentucky, Texas, California, Arizona, Nevada, Washington, D.C. and Indiana.
What underwriters look at
An extended-stay hotel behaves more like a managed apartment building with hotel branding. Suites carry full or partial kitchens, guests unpack into drawers and closets, and a stay is measured in weeks or months, often for relocating workers, traveling nurses, or families between homes. That rhythm changes nearly every exposure: more cooking, more personal belongings on site, more wear on appliances, and far less frequent contact with housekeeping staff.
Fire is the headline hazard. Stovetops, microwaves, and toaster ovens in every suite multiply the number of ignition points, and a guest who leaves a pan unattended produces a grease fire in a room the hotel does not control minute to minute. Underwriters usually ask about sprinkler coverage in every suite, stove-top fire suppression devices, inspection cadence, and how often staff enter rooms for wellness or maintenance checks. Water damage from dishwashers, refrigerator ice-makers, and washers in the suites is the quieter cousin of fire and produces many claims.
Long stays also create operational and legal questions. Some states and localities treat occupants who stay beyond a certain number of days as tenants rather than transient guests, which can mean that removing a non-paying occupant requires a formal court process rather than a simple trespass notice; the threshold varies and should be confirmed locally with counsel. A front desk that handles daily parcel deliveries for dozens of long-term guests also becomes a custodian of their packages, with the loss and dispute potential that comes with it. Owners should write these procedures down and train every shift on them.
In-room cooking fires and grease
Every suite kitchen is a potential origin point, and guests cook on their own schedule without supervision from staff.
Appliance water leaks
Dishwasher, washer, and refrigerator supply lines in many suites can leak behind walls and affect neighboring rooms before anyone notices.
Occupant disputes and removal
A guest who stops paying but stays can create an expensive, slow removal process where tenant-style protections may apply.
Parcel and personal property claims
Accumulated deliveries and stored belongings raise the odds of a claim that a package or valuable item went missing from the front desk or a suite.
Legal and contract requirements to know
- Workers compensation is required by state law for the housekeeping, maintenance, and front desk staff, and 9052 is the usual hotel classification in NCCI states.
- Kitchen appliances, smoke detectors, and in-room fire extinguishing devices are subject to local fire code and inspection.
- Many states and localities treat a guest who stays beyond a set number of consecutive days differently from a transient guest, so the rules for removing a long-term occupant should be confirmed locally.
- ADA Title III applies to places of lodging, including accessible kitchens in designated rooms.
- Franchise or management agreements commonly set minimum liability limits and require the owner to name the brand or manager as an additional insured.
How the lodging exposures apply to an extended-stay hotel
| Exposure | Relevance | What it means for this class |
|---|---|---|
| Liquor liability and dram shop | Rarely | Most extended-stay hotels do not sell alcohol. Guests who drink in their suites are not a dram shop exposure for the hotel, but hosted socials with alcohol should be disclosed. |
| Pool, hot tub and spa | Recommended | Long-staying families mean children use the pool more often and with less supervision. Rules, gates and drain covers matter as much here as anywhere. |
| Innkeeper's liability (guest property) | Core | Guests who live in a suite for weeks bring far more property than a one-night traveller. Whether the innkeeper statute’s cap still applies after a long stay depends on state law, so confirm locally. |
| Franchise brand insurance requirements | Situational | Many extended-stay properties are branded and follow franchise insurance requirements. Independent properties face lender requirements instead. |
| Assault and battery; human trafficking liability | Recommended | Weekly rates and minimal daily contact can make it harder to notice exploitation or criminal activity. Room-entry policies for periodic inspections and staff training help. |
| Shuttle and courtesy vans; valet and garagekeepers | Situational | A few extended-stay hotels run shuttles to nearby employers or job sites. Most have open parking lots and no valet. |
| Equipment breakdown (boilers, HVAC, elevators, laundry) | Core | Every suite has a refrigerator, cooktop, microwave and often a dishwasher, multiplying appliance failures and water leaks. Equipment breakdown and good maintenance records help. |
| Business income and seasonality | Recommended | Revenue is steadier than at transient hotels because of long stays, but losing a corporate account or project crew can drop occupancy quickly. Business income should account for the time to replace long-term guests. |
| Named storm and wind | Situational | Coastal extended-stay properties face the same named-storm deductibles as other hotels, often with displaced long-term guests needing relocation. |
| Cyber and PCI (booking systems, guest data) | Recommended | Stored payment cards for weekly billing and corporate direct-billing data raise the stakes of a breach. Cyber with notification costs is advisable. |
| Employment practices (high-turnover hourly staff) | Recommended | Smaller staff counts still generate employment claims, especially around scheduling and termination. |
| Workers' compensation | Core | Staff generally report under 9052 in NCCI states. Fewer daily room cleanings can mean heavier deep-clean shifts when long-term guests check out. |
Innkeeper’s liability for guest property
An extended-stay guest’s suite looks more like an apartment than a hotel room by the third week: clothes, electronics, sometimes tools and work equipment. Innkeeper statutes were written for transient guests, and in some states a guest who stays long enough may be treated more like a tenant, which can affect both the hotel’s right to remove them and whether the innkeeper liability cap applies.
Offer safes, post the required notices, and keep registration records that show the nature of each stay. Packages delivered for guests are another custody point; use a log and a secure room. Ask your agent whether innkeeper’s legal liability limits fit the amount of property long-term guests keep on site.
Innkeeper’s liability is set by state statute and the details differ from state to state. Confirm your state’s current requirements with counsel or a licensed agent — start with your state’s hotel & lodging page below.
Real claim scenarios
Cooktop fire in a suite
A guest leaves a pan on the stove and the suite catches fire, damaging adjacent rooms. Property covers the building and business income covers lost revenue; the guest’s own belongings are their responsibility unless the hotel was negligent.
Dishwasher leak floods the floor below
A failed supply line soaks two suites below. Property responds, subject to the water-damage terms and deductible.
Removal dispute with a long-term occupant
A guest refuses to leave after non-payment and claims tenant rights. The hotel needs legal advice on state law, and general liability may respond if the guest alleges injury during removal.
Lost package
A guest’s shipment signed for at the front desk goes missing. The claim tests how the hotel handles parcel custody and its innkeeper coverage.
What lenders, brands and clients demand
- Corporate accounts requiring certificates and additional insured status
- Lender property and business income requirements
- Franchisor insurance requirements for branded properties
- Relocation-firm contracts with indemnity provisions
Limits and deductibles
Review water-damage and appliance-related deductibles, and confirm that business income covers relocation of long-term guests if needed. Liability aggregates should apply per location.
Guest or tenant?
The legal line between a hotel guest and a tenant varies by state and can depend on the length of stay, how rent is paid and whether the room is the person’s primary residence. Crossing that line can change eviction procedures and liability. Consult counsel about your state’s rules and set policies on stay length and registration before a dispute arises.
Renting out a home instead of running a lodging business?
An extended-stay hotel runs a staffed lodging business with registration, housekeeping and a front desk, which is different from an owner renting out a single condo or home on a rental platform. If you are a host rather than a hotel operator, the short-term rental pages describe the coverage that fits that situation.
Hotel & lodging rules by state for extended-stay hotels
Each state page covers that state’s innkeeper’s liability law, liquor licensing posture, pool-safety code and lodging-tax treatment.
The coverage stack for extended-stay hotels
Most owners in this class start here. A licensed agent will confirm what your contracts, state, and payroll actually require.
General Liability Insurance
Responds to guest injury and property damage claims, including fire spread from a cooking incident.
How it worksWorkers' Compensation Insurance
Covers housekeepers cleaning kitchens, maintenance technicians repairing appliances, and desk staff.
How it worksCommercial Umbrella Insurance
Adds limits over liability for a building where guests effectively live in the units.
How it worksCyber Liability Insurance
Handles breaches of long-term guest records, billing information, and recurring card payments.
How it worksWhat it typically costs
For extended-stay hotels, pricing is shaped by how well the property manages cooking and water risks inside suites, not only by how many suites it has.
| Business size | What drives the cost at this size |
|---|---|
Small suite hotel with kitchenettes | Limited cooking equipment per unit narrows the fire exposure that underwriters see. |
Mid-size property with full kitchens | Full ranges and dishwashers in each suite broaden both the fire and water-damage picture. |
Large property with long-term occupancy | A high share of stays measured in months draws attention to occupant management and wear on units. |
Pricing is set by each carrier and varies by state, limits, payroll, and loss history — this is not a quote.
What moves your premium
- Whether every suite has a full kitchen or only a kitchenette
- Sprinkler protection and stove-top suppression devices
- Average length of stay and share of long-term occupants
- Maintenance schedule for appliances and supply lines
- Building age, wiring, and construction type
- Franchise or management contract requirements
Extended-Stay Hotels insurance questions
Workers' comp class codes for this work
These are the classifications most often used to rate this kind of work. Final assignment always comes from the carrier's underwriter.
9052Hotel — All Other Employees & DriversFront desk, housekeeping, laundry, maintenance, bell, valet and shuttle-driver staff at a hotel or motel.9050Hotels, Motels & Short-Term Residential Housing (California)California's own bureau classification for hotel, motel and short-term residential housing operations.
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