A Handy Guide To Landlord Insurance

This handy guide to landlord insurance is a must-read if you own a property with tenants in Florida. Or rent a property in the Sunshine State. Many landlords rent out condos, apartments, single-family homes, or other popular properties in Florida. And assume their homeowner’s insurance will cover all the costs associated with damage from a natural disaster or an accident. But that can prove to be an expensive assumption.

Many landlords may even believe that they are overpaying for even a basic landlord insurance policy. The reality is that if you are a rental property owner with only basic coverage, you may not have enough insurance to protect yourself and your property from disaster.

Therefore, it is important to have the proper insurance that covers more than just your rental property. Ensuring that your policy covers full liability, lost rent, and unpleasant surprise events is a genuine necessity. And not a liability or a cost that feels like a burden. This handy guide to landlord’s insurance can help you understand and choose the right cover for your rental property.

Why You Need Landlord Insurance.

There’s a good chance your policy only covers owner-occupied homes. But if you start renting your property to someone else, this coverage no longer applies. Besides, Florida renters are generally not held liable when a large appliance malfunctions or a person suffers an injury on the property through no fault of the tenant.

When a hurricane damages or destroys your home, or random acts of vandalism happen on your property, landlords could find themselves at a complete loss. This is where landlord’s insurance can play a major role. But a word of caution, these policies come in all shapes and sizes. So, before you start shopping for one, it is wise to consider and prioritize your specific needs to protect your rental property.

So, What Does Landlord Insurance Cover?

This handy guide to landlord’s insurance can tell you, a good, comprehensive landlord insurance policy must offer the three core protections:

Protection From Property Damage—If the property or fittings suffer from a natural disaster, fire, electric/gas malfunction, earthquake, vandalism, or irresponsible tenants, the policy should cover the cost. So, look to get a policy that offers replacement costs instead of the actual cash value. This is especially true if the fixtures and furnishings have aged. Or a policy that ensures a predetermined amount of compensation.
Lost Rental Income Protection — This feature provides temporary rental reimbursement to cover the loss of rental income if tenants could be occupying the property. Or rental losses should your property become uninhabitable due to severe flooding, resulting mold, or a severe infestation.
Liability Protection—This covers medical or legal costs that might result if the tenant or a visitor to the property suffers injury due to a property maintenance issue. Examples include injuries from falls on slippery walkways, accidental gas explosions, or structural collapses in and around the property.

Additional Coverage To Consider.

On top of lost rent and liability, landlords can also consider special assessment coverage. A special assessment is a fee levied by an owner’s association on community association property owners. These special assessments can be incorporated into standing association fees for several reasons, including necessary repairs or improvement projects in the building or neighborhood.

To avoid the unwelcome surprise of a large special assessment, property owners can purchase special assessment insurance, sometimes called Title Insurance. This type of insurance keeps your property from special assessments that were not included in the original purchase documents. If your rental properties are subject to homeowner’s association fees, this is one type of insurance that property investors should seriously consider.

In order to protect all your assets, it is necessary to confer with an insurance expert to understand the coverage you need. Furthermore, as your investment portfolio changes, so too should your insurance coverage. It is essential to evaluate your insurance coverage annually and make the adjustments necessary to keep you and your Weston rental properties fully protected.

How We Can Help.

At Real Property Management Premier we assist property owners to determine which insurance policies and coverage best suit their situation. By doing so, we can connect you with insurance professionals who offer quality insurance policies at the most competitive rates.

With industry experts on your side, rest assured that you have the correct kind of landlord insurance for a long and profitable rental property investing career.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.