Owning a rental property in South Florida comes with risks that a regular homeowners policy does not cover. Here are the questions landlords ask us most, for properties in Boca Raton, Miami-Dade, Broward and Palm Beach.
Can I use a homeowners policy on a rental?
No. Once you rent the property to tenants, you need a landlord policy (often called a dwelling fire or DP-3 policy) written for rental use. A homeowners policy can be denied if the home is rented.
What does a landlord policy cover?
It covers the building, and usually liability if a tenant or guest is hurt. Many policies can add loss of rents if a covered loss makes the property unlivable. It does not cover your tenant's belongings. Tenants should carry their own renters policy.
Do I need flood and windstorm coverage?
Flood is not included in a standard landlord policy and is a real risk in South Florida. Windstorm and hurricane coverage may be included, excluded or carry a separate deductible depending on the carrier. Ask about both before you close on a property.
What if I own a duplex, fourplex or small apartment building?
Small multifamily properties may need a commercial policy rather than a personal landlord policy. If the building is older or has had claims, it may be placed in the specialty market. We write this kind of habitational risk.
Should I put the property in an LLC?
That is a legal and tax question for your attorney. From the insurance side, if the property is in an LLC, the LLC needs to be the named insured so that coverage matches ownership. We can fix that on the policy once you decide.
What about short-term rentals?
Short-term and vacation rentals are treated differently from long-term leases. Many standard landlord policies exclude them. Tell us how you rent before you buy a policy.
Do I need an umbrella?
If you own rental property, an umbrella adds liability protection above the policy limit. It is usually inexpensive compared with the protection it gives.
How do I get a quote?
Send us the address, year built, roof age, and whether it is rented. Call (516) 476-6742 or use the contact page.
This article is general information, not legal or tax advice or a coverage guarantee.