Is Your Rental Property Insurance Sufficient?
Whether you rent out one property or an entire apartment complex in Florida, you are a landlord. This gives you income tax advantages and you can earn money from the rents you collect each month. Many people enjoy the financial freedom that this strategy can sometimes provide, but it’s not without risks.
How can you lower your risks in the landlord business? Taking out the right insurance coverage is one of the best ways to cover many of the risks that landlords face today. However, many people don’t realize that their landlord insurance is not sufficient or it doesn’t cover things they thought it did. This is what happened to Frank in our example story.
Frank started out as a factory worker, but he hated people looking over his shoulder all day long. He bought a house in his neighborhood, fixed it up and rented it out. This worked out well, and in the next five years, he bought three more houses. After 10 years, Frank owned 8 houses and a quadruplex property with four apartments. Before long, he planned to run his landlord business full-time. However, something happened one day that made Frank stop and think and it changed his life forever.
Frank rented a house to a nice couple, and the woman was an independent insurance agent. As they looked at the house for rent, she told him that many landlords don’t have the right kind of coverage. When he asked her what she was talking about, she explained the value of replacement cost coverage.
Frank had never heard of replacement cost coverage, and he asked his insurance agent about it. His agent told him not to worry about it because it was too expensive from his company. That’s when Frank decided to change insurance agents. His new agent found him affordable replacement cost coverage for his properties, and she saved him money in the process.
Two years later, one of Frank’s homes was destroyed by fire, and thankfully no one was injured. Since he had replacement cost coverage, his insurance covered the cost of rebuilding, minus the deductible. Frank never forgot that lesson he learned, and today he always consults professionals for things he is not experienced in.
How Does Landlord Insurance Differ from Homeowners Insurance?
Some aspects of landlord coverage are similar to homeowner policies. However, homeowner insurance is designed for owner/occupied properties. Landlord insurance covers people who own real estate properties as a business and rent or lease them out.
Who Needs This Insurance?
People that rent out houses need this coverage and so do these people:
- Apartment rental owners
- Townhouse rental owners
- Duplex owners
- Condominium associations
- Trailer park landlords
- Student housing landlords
- Owners of commercial properties
What Coverage is Standard?
Every landlord should have these basic coverage options:
- Building insurance – should include fire, wind, or vandalism
- Liability – covers things like lawsuits and injury claims
- Building contents – things in the building that you own such as major appliances.
- Loss of Use / Loss of Rental Income – your policy can provide coverage for lost rental income if the home/building is unusable and unrentable.
What Options Are Available?
- Flood insurance – most standard building insurance policies will not pay for flood damage to your properties.
- Extra liability coverage – you may need more liability protection for your business.
- Umbrella liability coverage – you may wish to coverage all of your rentals will an additional layer of liability protection
- Other Structures coverage – you may have additional buildings on the property that need to be insured
- Home Systems Protection – get additional protection from home systems breakdown (similar to a home warranty)
- Identity Theft / Identity Recovery – help pay for the costs associated with recovery your identity after identity theft
- Ordinance or Law – pays for additional costs to rebuild due to law or ordinance changes
What about Special Discounts?
When you come to the Dennis Insurance Agency, you have the benefits of an independent agency that checks with many companies to find you the best deals. Here are some of the discounts that may be available to you:
- Gated communities
- Newer roofs
- Claims-free discount
- Renovation discount
- Multiple policies discount
- Good credit discounts
More Benefits from Dennis Insurance Agency
We can insure older homes and properties no matter what the age. This includes block houses, A-frame houses, and manufactured homes. You don’t need to currently have insurance, and we have programs available that don’t require inspections.
We’ll write you a policy that’s effective today, and we can help you with easy payment plans.
The Independent Advantage
When you choose an independent agency, you have people looking out for your best interests and not the interests of an insurance company. A standard insurance agent works for one company, so naturally, he or she is going to show you all the good things about that one insurance company. You won’t hear many good things about the competition because they could lose your business.
Your independent insurance agent has access to some of the top insurers in the state. We look far and wide for the best deals and the lowest possible premiums for our clients. Our sole motivation is to serve you, and our account managers are not paid a commission on sales. Call Dennis Insurance Agency today at 800-238-7556 to see what we can do for you. To receive a free quote on landlord insurance in Florida, click here now