Landlord Insurance FloridaLandlord Insurance - Florida

Florida landlord insurance is property insurance for landlords who rent out their non-owner-occupied homes. It provides more coverage than homeowners insurance, including loss of rent, tenant neglect, and tenant intentional and malicious damage.

Landlords who own rental houses, condos, or co-ops and rent them out for six months or more are eligible for landlord insurance. Some insurers allow you to add short term rental permission endorsements. Landlord insurance does not allow you to live on the property; your homeowners policy is the best option. Airbnb’s require commercial rental policies.

What is Landlord Insurance?
Landlord insurance, also called dwelling-fire insurance, dwelling insurance, or non-owner-occupied insurance, is available in three options:

  1. DP-1 (dwelling-fire form 1). Barebones coverage. Named perils only, usually just fire.
     
  2. DP-2 (dwelling-fire form 2). Broad coverage. Named perils only. Typically, wind, hail, plumbing water overflows, falling objects, and more.
     
  3. DP-3 (dwelling-fire form 3). Special dwelling landlord coverage. Open peril policy. Covers any peril except those listed as exclusions. Like an HO-3 standard homeowners policy.

Landlord insurance never covers a tenant's possessions.

If you fail to convert your home insurance policy to a landlord policy, your insurance company will not cover your home's damages during your tenant's stay.

What Does Florida Landlord Insurance Cover?
Florida landlord insurance covers the cost of financial losses to rented homes. It pays for losses sustained by the house, lot, fences, outbuildings, land, and interior. Coverage for DP1 and DP2 policies is minimal. DP3 coverage is like an HO3 policy, comprehensive. Florida landlord insurance includes:

  • Dwelling Coverage. Your rented property (dwelling).
     
  • Other Structures. DP1, DP2, and DP3 policies usually cover gazebos, boathouses, docks, fountains, etc., at 25% of your dwelling coverage amount.
     
  • Liability Coverage. That includes medical payments, legal defense costs, and property damage if someone gets hurt on your property. Landlord liability insurance covers instances where a tenant or a visitor sustains personal injuries, or they sue you. Even if a judge determines you are liable for these damages, the liability policy covers you.
     
  • Property Coverage. DP3 policies include coverage for equipment needed to maintain your property. That includes personal belongings you leave behind for renters, such as window AC units, lawnmowers, and snow blowers. It typically excludes your bikes, flower pots, and non-maintenance related items. DP1 and DP2 often exclude all personal property.
     
  • Loss of Use. If your dwelling is damaged and unlivable, DP3 policies pay your renter's additional living expenses to stay elsewhere until your home is ready. It covers a new rental or hotel, food, pet boarding, etc. DP1 and DP2 policies usually exclude loss of use.
     
  • Loss of Rental Income. If your rental is unlivable after a covered peril damages it, and your renters move out, loss of rental income pays the rent while it is getting repaired. Loss of use is generally available in DP1, DP2, and DP3.

What is Florida Condo Landlord Insurance?
Condo landlord insurance is different from a standard landlord insurance policy; it only covers items inside the condo. It covers losses such as appliances, interior wiring and plumbing, ceilings, floors, and walls.

The condo association's master insurance policy pays for losses to the building's exterior, roofs, and community amenities.

The landlord's condo policy does not cover the tenant's personal property.

Deductibles and Policy Limits
DP2 and DP3 landlord policies apply replacement cost valuations (RCV) for dwelling claims and ACV for personal property. DP1 uses actual cost value (ACV) for both the dwelling and personal property. Deductibles and policy limits apply, and you can customize the amounts.

What Disasters Does Florida Landlord Insurance Cover?
Landlord coverage depends on which landlord policy you have. DP1 and DP2 are named peril policies, which means covered perils are explicitly listed in the policy. DP3 landlord policies are open peril, which means any peril has coverage unless it is expressly excluded in your policy. Landlord coverage by policy type:

Perils Covered by Type of Landlord Policy DP1 DP2 DP3
Aircraft    ✓    ✓    ✓
Explosion    ✓    ✓    ✓
Fire / Lightning    ✓    ✓    ✓
Riot / Civil Commotion    ✓    ✓    ✓
Smoke    ✓    ✓    ✓
Vandalism / Malicious Mischief (by others)    ✓    ✓    ✓
Vehicles    ✓    ✓    ✓
Volcanic Eruption    ✓    ✓    ✓
Windstorm / Hail    ✓    ✓    ✓
Weight of Snow / Ice    ✓    ✓    ✓
Emergency Repairs (covering a roof after a storm)        ✓
Fire Department Service Charge        ✓
Debris Removal        ✓
Burglary Damage        ✓
Collapse        ✓
Cracking / Bulging / Freezing / Cracking / Tearing Apart of Heat, Air, and Water Systems        ✓
Electrical Damage        ✓
Vandalism by Your Tenants        ✓
Accidental Discharge or Overflow of Water or Steam        ✓
Glass Breakage        ✓
Falling Objects        ✓

What Does Florida Landlord Insurance NOT Cover?
Excluded perils also depend on which landlord policy you have. Below are the commonly excluded perils by policy type. You can add coverage for these excluded perils as endorsements if you need them covered:

Perils Excluded by Type of Landlord Policy DP1 DP2 DP3
Ordinance or Law    ✓    ✓    ✓
Earth Movement    ✓    ✓    ✓
Accidental Discharge or Overflow of Water or Steam    ✓    ✓    ✓
Power Failure    ✓    ✓    ✓
Neglect    ✓    ✓    ✓
War    ✓    ✓    ✓
Nuclear Hazard    ✓    ✓    ✓
Intentional Damage    ✓    ✓    ✓
Governmental Action    ✓    ✓    ✓
Mold / Rust / Rot    ✓    ✓    ✓
Vandalism on Vacant Property    ✓    ✓    ✓
Wear and Tear    ✓    ✓    ✓
Pollutants    ✓    ✓    ✓
Cracking    ✓    ✓    ✓
Snow on Outdoor Property    ✓    ✓    ✓
Birds / Vermin / Insects    ✓    ✓    ✓
Freezing in Vacant Property    ✓    ✓    ✓
Floods    ✓    ✓    ✓
Theft    ✓    ✓    ✓
Burglary Damage    ✓    
Collapse    ✓    
Cracking / Bulging / Freezing / Cracking / Tearing Apart of Heat, Air, Water Systems    ✓    
Falling Objects    ✓    
Glass Breakage    ✓    
Weight of Snow / Ice    ✓    
Electrical Damage    ✓    

Other exclusions for all types of landlord insurances typically include:

  • Owner-Occupied Rentals. Landlord insurance does not apply if the landlord lives in the rental or rents out a room, floor, or house section.
     
  • Tenants' Personal Items. Landlord insurance usually does not cover your tenant's personal possessions (bikes, computers, clothes, etc.). Your tenants will need to purchase their renters insurance policy.

Optional Endorsement Add-ons for Excluded Items
Be sure to get these added protections before a disaster strikes! Landlord insurance endorsements typically include:

  • NFIP or Private Insurer Flood Coverage
  • Earthquake / Sinkhole / Mudslide / Landslide Coverage
  • Equipment Mechanical Breakdowns (dishwashers, lawnmowers, etc.)
  • Personal Property (beyond maintenance equipment)
  • Emergency Travel (lockouts, repairs, etc.)
  • Reimbursement for Paying Tenants for Air Conditioning and Heating Loss 
  • Rentals Under Construction
  • Vacant Rentals
  • Building Code Upgrades
  • Vacant Home Permission
  • Short-Term Rental Permission
  • Short-Term Vacancy Permission
  • Occasional Rental Permission
  • Vandalism
  • Identity Theft
  • Limited Burglary
  • Replacement Cost Value (RCV)
  • Home Daycare / Childcare
  • Service Line Coverage (Water, Sewer, Gas, Utility Lines)
  • Home Sharing
  • Scheduled Personal Property
  • Mold

Our article, 22 Landlord Insurance Endorsements in Florida, provides more detail about each of these landlord endorsements and more. There are many more riders or endorsements landlords can purchase. Check them in this article: 35 Possible Home Insurance Riders.

Does Florida Landlord Insurance Cover Tenant Damage?
Yes. If a tenant damages your property, you are protected. That includes malicious damage, vandalism, broken pipes, overflowing water, or hot water damage to floors. Fires from misused gas appliances or damage to personal belongings you leave for tenant use fall under named perils too.

However, wear and tear are not covered. If you fail to keep current on maintenance issues, your insurance company will likely deny claims that involve upkeep.

If your tenant's property gets damaged for any reason, your policy does not cover it. In this case, their renter's insurance kicks in.

Landlord Additional Insured
An additional insured extends liability coverage to other groups and individuals. For example, as a precaution, if you own a condo in a large residential property, you may want to name the building owner or condo association as an additional insured. Doing that may prevent those parties from suing you if your negligence causes them to face liability for damages. Instead, they would file a claim against your landlord insurance policy.

You may also wish to have tenants name you as an additional insured in their renter policy. Doing that protects you if your tenants face liability for negligence. If you want that reassurance, you are within your rights to ask tenants to add you or your HOA as an additional insured.

Florida Landlord Insurance While Living Abroad
Many people deciding to live abroad rent out their homes while they are gone. Doing this brings in income and keeps your home maintained.

However, there are challenges if you decide to be an ex-pat landlord. One of these involves making sure tenants hold up their end of the deal. To make this easier, hire a property management company to handle:

  • Repair requests
  • Rent payments
  • Legal matters
  • Evictions
  • Enforcing the lease agreement

A property management company will allow you peace of mind as the manager will handle issues appropriately.

Landlord Insurance Cost in Florida
An NAIC study found the average landlord yearly premium was $1,211 in 2019. However, like any other insurance policy, your monthly premium depends on your coverage options. Since landlord insurance is riskier due to tenants, it is more expensive than homeowners. Expect to pay 15 to 25 percent more than homeowners insurance.

Landlord Insurance Claims in Florida
Common claims against DP3 landlord insurance include:

  • Damage linked to the perils (listed above)
  • Malicious property damage or vandalism by tenants
  • Loss of rental income if the premises becomes uninhabitable (e.g., when a tree falls through the roof)
  • Theft of your property that you left in the rental unit for tenant use
  • Liability for personal injury arising from unsafe conditions or maintenance neglect

Is Your Rental Home Protected?
Landlord insurance policies offer peace of mind, and our insurance consultants are ready to assist you. Click below to get an online landlord insurance quote and avoid the pitfalls of landlord liability.

Hope that helps!

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At your service,
Young Alfred