Landlord Insurance in Florida: The Ultimate Guide
Owning a rental property in Florida is not just about receiving rental income, but it also means having a bigger responsibility as you need to provide your property with some type of protection. You can do this by getting rental property insurance to have some property coverage. And by turning your personal property into a rental property, you then become a landlord. For this, you would need more insurance coverage — and this is where landlord insurance comes in.
Since Florida’s location is coastal, the most common concerns that landlords there experience are damage caused by the weather. Because of this factor, a landlord with rental properties in the area needs to have more liability coverage to give them more protection. Call an insurance specialist today to learn more about what insurance policies they have that may help your business, and at the same time, they can help you determine which policy is best for your needs.
Here’s everything you need to know about landlord insurance in Florida.
What is Landlord Insurance in Florida?
Landlord insurance in Florida is property insurance for landlords who rent their homes to renters. This type of policy provides more coverage than homeowners insurance as it includes loss of rent and various types of damages that are not covered by homeowners insurance.
Is Landlord Insurance Required in Florida?
The state of Florida doesn’t require landlord insurance. However, lenders require this policy if you are financing a rental property.
What is a Comprehensive Coverage Landlord Insurance Policy in Florida?
Landlords with rental properties in Florida have the option to choose a certain type of comprehensive insurance called the Florida Rental Property Insurance Policy. This type of insurance works best for rental properties that are single-family residential types as well as for properties that are seasonal or for real estate investments that are owned by an individual or some other entity.
This insurance policy is also known as Dwelling Fire Insurance or Florida Landlord Property Insurance. It offers protection for the landlord against loss of rental income and loss to the property structures, and the loss of use. With this kind of liability coverage, a landlord also gets protection from other types of liabilities.
Though Florida Rental Property Insurance has big insurance coverage, it does not include the personal property of a landlord, such as appliances or furniture. However, this additional coverage may always be added to your covered loss.
How Much Does Landlord Insurance Cost in Florida?
The cost of landlord insurance in Florida varies because of many different aspects, but typically it may cost a landlord about $2,340 per year. This kind of policy is around 10% to 20% higher than the regular homeowner’s insurance.
Being in Florida, near the water, having the right coverage for landlord insurance is essential because it can cover weather-related incidents such as floods, strong winds, lightning, hurricane, water damage, and the like. These kinds of circumstances can cost a lot of money and hurt your financial situation. That is why choosing the best coverage would help you in many ways.
Damage from wind and hail, for example, ranges from \$6,000 to \$17,000, while water damage expenses can be from \$7,000 to \$12,000, and physical damage can cost you about \$1,000 to \$3,000. And if you are not in a very good neighborhood, a landlord can have expenses to cover for damage caused by burglary and theft, which can be around $2,000 to $4,000.
Apart from the type of neighborhood where the property is located, another aspect that can affect the amount of insurance premium is if you are close to the coastline. Call an insurance specialist to learn more information about the insurance policies available or other financial services that they can offer to help you run your business smoothly.
Reduce your risk by making sure that your business is adequately covered and that you are safe in case of claims. By getting the best landlord insurance policy, you are not only protecting yourself as a landlord and your business but also including your tenants’ well-being. Treat your landlord insurance as an investment and make sure that you are covered the right way.
Ask your trusted insurance specialist for a free quote as this is valuable information as well because it will help you decide how much you can afford.
What Does Landlord Insurance in Florida Cover?
- Liability Coverage: This type of policy included medical payments, legal defense costs, and property damage if someone gets injured on your property.
- Dwelling Coverage: Your property (dwelling)
- Property Coverage: This policy also covers equipment needed for property maintenance such as lawnmowers and snow blowers
- Loss of Use: If your property is damaged, this policy pays your renter’s additional living expenses to stay somewhere else until your home is ready.
Available Options for More Coverage
To better protect you and your business, you may need to get more coverage. For this, your insurance company can provide a menu of their insurance policies and help you figure out which one suits your company best. When you have information and learn more about the options available for you, you can select the one that would cover your company the most against any liability or claims. Get a quote to know how much your coverage will amount to.
Some of the options for additional coverage are:
- protection against sinkhole
- coverage for content against theft
- replacement value for up to $2 Million
- law or ordinance coverage
- personal property replacement lost
- coverage for short-term rental both for inland or near the water area
- payment options of either quarterly or semi-annually
- coverage for dwelling or structures under repair
- corporation, LLC, partnership, or other entity that can be drafted even without premises liability or personal coverage
- buy-back options for screen enclosure
The more coverage you have in your landlord insurance, the more protection you can have against claims, which protects your financial situation. By having the best policy, you protect yourself, your building, and your tenants. Ensure that you get the best landlord insurance from an insurance company that is part of a reliable insurance group to ensure that you are in safe hands.
Do I Need to Change My Homeowners Insurance If I Rent Out My House in Florida?
Your homeowners policy will likely have a clause that terminates coverage once you decide to turn your apartment into a rental property. Remember to change your homeowners policy to the rental property before new renters move in because your home won’t be covered if you don’t.
Whether you need building insurance, home insurance, property insurance, or any other kind of insurance and whether the purpose is for personal or company, the point is to have some type of insurance to give you protection against claims, damage, or other types of liabilities. When you own an insurance policy, you are providing your family with some protection because it will allow you to save for their future.
Give your insurance provider a call and know what kind of service they can offer you that can make you feel safe and secure from any type of circumstance, including fire damage or building damage. Insurance becomes even more significant if you start having a tenant and you rent out your structures to make a profit because you will have more exposure to certain risks.
Confused about landlord insurance in Florida, or need some help getting a quote for your business? Call us or fill out a quote request form and get all the information you need fast and for free!
