Florida Rental Property Insurance Basics

As a landlord, renting out your home can be lucrative but stressful. The process does not simply involve putting up a ‘For Rent’ sign. It involves a lot more. There are certain guidelines that you have to follow before the new tenants move in, and part of that includes insurance. A question we and our agents receive a lot is, “what’s the difference between the insurance I need for my home versus my rental property?”.

The Basics

Florida homeowners insurance policies are specifically designed for a primary residence which is owner-occupied. This type of policy protects your home, personal contents, and liability.

With rental property insurance, or landlord insurance, this policy is intended to protect your investment as a landlord.

The Structure

Both homeowners and rental property policies have coverage for the main structure (i.e. the home, condo, etc) in the event of a loss. The type of insurance policy you purchase will determine what (wind, hail, floor or water damage, vandalism, etc.) your structure is covered against.

One thing to discuss is the difference between replacement cost vs. actual cash value.

Liability

In addition to the standard items a homeowners policy covers, a rental property policy will also protect you in the case of:

Damages caused by the tenant or guest(s)
Uninhabitability
Injury to your tenant or their guest(s)

According to Rocket Lawyer, “traditional homeowner’s insurance primarily protects the property without protecting against the tenants’ actions since, in a traditional policy, willful acts are generally excluded. Uninhabitability protection isn’t covered under homeowner’s insurance either, and tenant injuries do not receive the same coverage necessary to protect you in such a case.”

Additional Items

Other things to discuss with your company or agent are:

Covering major appliances in the case of a natural disaster or normal wear
Personal property if you have any that remains in the house, such as furnishings
Separate structures
Loss of income
Multiple rental properties

Is it Required?

While rental property or landlord insurance is not required by law, it is certainly important. It can protect you from financial loss or catastrophe from accidents, natural disasters, and other liability issues associated with your rental property.

Why leave it to chance? With very affordable products available, a little protection and investment upfront can save you hundreds, even thousands of dollars do the road.

Stability, Strength, Service

Olympus Insurance Company is revolutionizing the Florida homeowners’ insurance market. With quality homeowner insurance products, financial strength and superior service, you can be confident that Olympus is here to stay. Our uniquely disciplined organic growth strategy differentiates us from many other Florida insurers. The emphasis on steady, conservative expansion continually strengthens our financial position and enables Olympus to provide the finest possible service to Florida property owners. Agent or homeowner, inland or coastal, doing business with Olympus always means peace of mind.

This article is for informational purposes only and does not form a part of, replace, change or amend any terms, conditions, provisions or language within your Olympus Insurance policy. We encourage you to read your entire policy.