The owner of a 1970s two-story motel on US-192 in Kissimmee has run the property for fifteen years. Half the rooms go to tourists on weekly rates, and the other half have become long-term stays, families and workers who have lived there for months. At renewal, the carrier non-renews the property, citing the roof’s age, a prior assault in the parking lot and the extended-stay occupancy. The owner calls three agents. Two say no one will write it, and the third quotes a policy that excludes assault and battery, human trafficking claims and anything involving the long-term guests.
That’s what insuring an independent motel or older hotel in the Kissimmee and Orlando tourist corridor looks like today. These properties are among the hardest habitational risks to place in Florida, and the gaps in a cheap policy are exactly where the most expensive claims come from. They can still be insured well, but it takes markets that specialize in this class and an honest picture of how the property actually operates.
Why carriers are cautious
Independent motels and older hotels along US-192, International Drive and Orange Blossom Trail combine several things underwriters look at closely: older buildings and roofs, exterior corridors, high guest turnover, cash transactions, crime in the surrounding area and, often, a mix of tourists and long-term residents. Many standard carriers have left the class entirely, so most of these properties are placed in the surplus lines market through specialty programs. Our article on the problems older hotels face with insurance covers what carriers look for.
Assault, security and the liability side
The most consequential part of a motel’s policy is usually the liability side, and specifically how it handles assault and battery. Guests hurt in a fight, a robbery in the parking lot or a confrontation with staff can lead to claims that the owner failed to provide reasonable security. Many motel liability policies exclude assault and battery or limit it to a small sublimit, and that provision often matters more than the policy’s overall limit. Our article on assault and battery coverage explains how those exclusions and sublimits work.
Security measures affect both the claim and the price: working cameras at entrances, parking areas and corridors, good lighting, controlled access, key card systems instead of metal keys, and a front desk staffed overnight. Some properties add a security guard on weekend nights; our article on security guard insurance in Orlando covers what that company should carry.
Human trafficking claims
Lawsuits against hotels and motels under federal and state human trafficking laws have become one of the most serious liability issues in the lodging industry. These claims allege that the property knew or should have known about trafficking happening there. Many hotel and motel liability policies now exclude these claims or limit them sharply, and some markets ask detailed questions about training and procedures before they’ll quote. Staff training on recognizing trafficking, clear procedures for reporting it, and documentation of both are now part of operating and insuring a motel responsibly. Ask exactly how your policy treats these claims.
Long-term guests
Many corridor motels rent rooms by the week or month, and some guests stay long enough that the property starts to function more like an apartment building. That changes the insurance. Underwriters want to know how many rooms are occupied long-term, and policies written for transient lodging may not fit a property where much of the occupancy is residential. Long stays can also raise legal questions about whether a guest has become a tenant, which affects how the property handles disputes and removals. Disclose the real occupancy mix on the application, and confirm the rules with an attorney. Our article on apartment building insurance in Orlando covers the residential side.
The building, fire and storms
Older motels have older roofs, older wiring and, often, in-room cooking by long-term guests, which raises fire risk. Carriers ask about roof age, electrical updates, smoke detectors, fire alarm systems, sprinklers and whether hot plates or other cooking appliances are allowed in rooms. A property that has updated its roof and electrical system and documented it has far more options.
Kissimmee’s inland location removes storm surge but not hurricane wind, and the hurricane deductible is a percentage of the insured value. Convert it to dollars. Heavy rain can also flood ground-floor rooms far from any mapped flood zone, and property policies don’t cover flood. Our article on hurricane and flood insurance for hotels covers both, and our article on commercial property insurance in Orlando covers code upgrades and sinkholes, which matter for older buildings in Central Florida.
Lost income and seasonality
A fire or storm that closes rooms costs the property its income while repairs are made, and for a motel that depends on peak tourist season, the timing matters. Business income coverage should be sized for a loss during the busiest months, not an average one, with a restoration period that accounts for permits and contractor availability after a regional storm. Our article on business interruption insurance for hotels explains how to set it.
The rest of the program
A few other coverages round out a motel’s program. Pools are a major source of liability claims and need posted rules, fencing and regular inspection. Guests’ belongings left in rooms or with the front desk are a separate exposure. Bed bug claims are common in lodging, and many policies exclude or limit them. Housekeeping and maintenance staff need workers’ compensation once the property has four or more employees, counting part-time staff, and employee theft and cash handling call for crime coverage. If the property has a bar or sells alcohol, liquor liability is a separate policy; our article on liquor liability for hotels covers it. The property also needs a current public lodging license from the Division of Hotels and Restaurants, and carriers ask for it.
Worth confirming on your policy
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Property placed with a market that writes older motels, at today’s replacement cost
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Roof, electrical and fire protection updates documented
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Hurricane deductible calculated in dollars, and flood coverage evaluated
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Assault and battery covered, not excluded or sublimited below what you need
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How the policy treats human trafficking claims, with staff training documented
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Long-term occupancy disclosed accurately on the application
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Cameras, lighting, access control and overnight staffing in place
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Business income sized for a loss during peak season
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Pool safety, bed bug and guest property exposures addressed
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Workers’ compensation and crime coverage for staff and cash handling
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Liquor liability if the property sells alcohol
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Public lodging license current
For more, see our hospitality insurance and boutique hotel insurance pages, and how much hospitality insurance costs in Florida.
Talk to us
Prestige Insurance Group works with motel and hotel owners across Kissimmee, Orlando and Central Florida, including older independent properties that standard carriers decline. Through our access to more than 100 specialty markets, we can often find options when other agents can’t. Call our Orlando office. Se habla español.
Orlando: 407-993-2331
This article is general information, not legal advice. Coverage forms, exclusions and carrier appetite vary and change over time, and questions about guest tenancy and lodging regulations should be confirmed with legal counsel.
