Universal Property & Casualty Landlord Insurance

Universal Property & Casualty Landlord Insurance

Universal Property & Casualty Landlord Insurance
Universal Property & Casualty provides property insurance coverage across 19 states. Their insurance policies are available through a network of independent agents, like us, Young Alfred. They provide many different types of insurance policies, but this article focuses on Universal Property & Casualty's landlord insurance.

About Universal Property & Casualty Insurance Company
Universal Property & Casualty Insurance Company began in Florida in 1997. Florida is a challenging home insurance market due to storms and hurricanes. Despite this, Universal P&C has grown steadily. They also involve themselves in community projects, focusing on hurricane-hit areas.

Does Universal Property & Casualty Offer Landlord Insurance?
Yes, Universal Property & Casualty Insurance offers landlord insurance in 19 states.

Where Can I Buy Universal Property & Casualty Landlord Insurance?

Where Can I Buy Universal Property & Casualty Landlord Insurance?

  • Alabama
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Illinois
  • Iowa
  • Indiana
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • South Carolina
  • Pennsylvania
  • Virginia

DP Insurance Coverage Comparison

Universal Property & Casualty Landlord Insurance Coverage Options
The types of coverages Universal Property & Casualty provides landlords are:

  • DP1 - Dwelling Fire Insurance. This policy is suitable for small budgets and for properties left vacant for long periods. As a named perils policy, it only covers the perils stated in the policy. It typically covers nine perils. It is an Actual Cash Value (ACV) policy and only covers the rental dwelling and other structures on the rental property.
     
  • DP2 - Named Perils Policy. As a named-perils policy, DP2 uses replacement cost value (RCV) when paying dwelling and other structures claims, meaning it does not subtract depreciation. DP2 offers the same coverage as DP3, except it only covers 16 named perils for all property types.

    It is not suitable for properties left vacant for long periods. The policy voids if the home sits vacant for 30-90 days or more.
     
  • DP3 - Standard Landlord Insurance. This policy is the most popular rental property insurance. It covers the dwelling, other structures, and the landlord's personal property. It also includes liability, medical payments coverage, and loss of use.

    DP3 is an open-peril policy, covering all perils for the dwelling and other structures unless explicitly excluded. DP3 pays rental dwelling and other structures claims using RCV with no deduction for depreciation.

    It is a named perils policy for personal property covering 16 named perils and pays ACV for those personal belonging claims.

All three policies require a deductible for property claims. No policies cover the land under your rental.

You set your coverage limits and deductible. The rental home's coverage amount must at least match 80% of the cost to rebuild the structure of your home. The amount must include all attachments and built-ins, and materials, and labor.

**We will reference the DP3 option for the remainder of the article.**

Universal Property & Casualty (DP3) Landlord Insurance Coverage

What Perils Does Universal Property & Casualty Landlord Insurance Cover?
As an open-peril policy, it provides coverage for all perils unless explicitly excluded. Check your declarations page for perils not covered by your policy. The image above shows the hazards typically not covered by a DP3 open-peril policy.

  • Open Perils Coverage for the Rental Dwelling and Other Structures. Both property types benefit from the open-peril coverage provided by a DP3 policy.
     
  • Named Perils Coverage for the Landlord's Personal Property. Anything you leave for a tenant will have named perils coverage for 16 perils.

Universal Property & Casualty Insurance - Landlord Dwelling Insurance Coverage
Dwelling coverage relates to the physical structure of the rental home and everything attached and built into the house, including kitchen cabinets. This aspect of the policy protects you if a covered peril damages your rental home.

  • Open Perils Coverage. It covers all perils unless specifically excluded. For example, it excludes floods and earthquakes. You can buy coverage for those as an endorsement.
     
  • RCV. The RCV claims valuation method pays the total amount of the claim based on current market value with no deduction for depreciation. So, if it costs $400,000 to rebuild your rental house, you get $400,000. That is true even if you only paid $250,000 for it originally.
     
  • Coverage Limit. You set your coverage limit based on the cost of rebuilding the property, including materials and labor. Coverage must be at least 80% of that value.
     
  • Deductible. All dwelling insurance claims are subject to a policy deductible. You choose the amount when buying the policy. Typical amounts are $500, $1,000, and $2,000; $1,000 is the most common.

Universal Property & Casualty Insurance - Landlord Other Structures Coverage
Other structures refer to items that are part of but not attached to the property, including sheds, garages, driveways, and fences.

  • Open Perils Coverage. Other structures benefit from the open-perils policy.
     
  • RCV. This valuation method is used to value the claim with no depreciation.
     
  • Coverage Limit. The other-structures coverage limit is 10% of the limit set for the rental dwelling. The 10% does not reduce the total dwelling coverage amount; it is additive.
     
  • Deductible. Your chosen policy deductible is also applicable to other structures.

Perils Covered by Landlord Insurance DP3

Universal Property & Casualty Insurance - Landlord Personal Property Coverage
Personal property refers to property the landlord leaves for the tenant's use. It covers damage that occurs both on and off the premises. Landlord personal belongings coverage comes with:

  • Named Perils Coverage. It covers sixteen named perils. You will find the complete list on your policy declaration page. The image above outlines the perils typically listed.
     
  • ACV. The actual cost value is a valuation method used for personal property. It uses the RCV value of items, then deducts depreciation on each claim. You can upgrade to RCV.
     
  • Coverage Limit. You choose the coverage limit. Your coverage amount should equal the total value of your items.
     
  • Deductible. Your policy deductible applies to all incidents.

Personal Property Sub-Limits

Personal Property Insurance Sub-Limits
Specific categories of personal items, like bikes and computer equipment, have a maximum claim value. It is called a sub-limit and is for high-value items only. For example, computers have a sub-limit of up to $1,500.

If your items are worth more, take out a Scheduled Personal Property Endorsement. It increases the coverage, has no deductible, and uses RCV for claims valuations.

Universal Property & Casualty Insurance Landlord Liability Insurance
Landlord personal liability coverage offers financial protection if someone files a lawsuit against you. It provides coverage if you are responsible for an individual's property damage or a personal injury.

  • Coverage. It covers the cost of the medical bill, property repair or replacement, other damages, legal fees, etc.
     
  • Coverage Limit. You set your liability coverage limit, usually $100,000 to $300,000. We recommend at least $500,000. You deal with renters and their guests who are more likely to sue than your friends and family.
     
  • Deductible. There is no deductible.

Universal Property & Casualty Insurance - Landlord Medical Payments Insurance
If someone suffers a personal injury on your property, landlord medical payments insurance covers the cost of their medical bills.

  • Coverage. It covers the injured's loss of income, funeral expenses, medical bills, and more.
     
  • Coverage Limit. You set a limit, which is usually from $1,000 and up to $5,000.
     
  • Deductible. There is no deductible.

Universal Property & Casualty Insurance - Landlord Loss of Use Coverage
This endorsement will cover rent payments if your tenant must temporarily move due to damage from a covered peril. The amount paid usually equals the fair market value; whatever the going rent should be for the rental unit. It pays until you finish repairs or the tenants move back, whichever is sooner.

Your tenant's renters insurance policy should include coverage for additional living expenses. For example, it pays for their hotel, Airbnb, or temporary rental expenses. The two coverages together are a win for both the tenants and landlord.

Universal Property & Casualty Insurance Umbrella Policy
If you want more liability coverage, you can add an optional umbrella policy. It offers additional coverage over your chosen landlord insurance liability limit. It protects against significant liability claims and usually starts at $1,000,000 of coverage.

Universal Property & Casualty Condo Landlord Insurance
A condominium association has a master policy that covers the building and common areas. Taking out landlord condo insurance will plug any gaps not covered by the master policy. It provides the same coverage as standard landlord insurance, except it only covers the condo parts that you own.

For example, the condo association probably owns the shared walls, exterior walls, windows, plumbing, and sometimes kitchen cabinets. Therefore, your condo policy would not cover those things; your condo association's master policy would.

Landlord Insurance Endorsements

Universal Property & Casualty Landlord Insurance Endorsements
Universal P&C offers many optional endorsements that you can add to your landlord insurance policy. An endorsement will either extend or increase coverage not included in the standard landlord insurance policy.

Loss of Rental Income Endorsement
If a tenant withholds their rent or cannot pay, this endorsement will cover the rental payments.

Universal Property & Casualty Flood Insurance
Landlord insurance covers water damage in certain circumstances, but it excludes flooding. Universal P&C provides an additional flood insurance policy.

Universal Property & Casualty Service Line Coverage
Property owners are responsible for repairing utilities that run underground from the rental property. Add service line coverage to your policy to help pay for repairs done to service lines like gas, electric, sewer, and water lines.

Universal Property & Casualty Mechanical Breakdown Coverage
Equipment can be expensive to replace or repair. This endorsement covers the repair or replacement costs for appliances and equipment that break down from mechanical failure.

Tenant Move Back Endorsement
This endorsement covers the costs of moving a tenant back into a property after renovations or repairs.

Vacancy & Non-Occupied Endorsements
DP3 landlord insurance does not cover vacant property, usually 30-90 days or more. Additional endorsements will help cover gaps in the policy, and they can also protect your shorter rental arrangements.

  • Non-Occupied Dwelling / Short-Term Vacancy Permission. This endorsement extends landlord coverage to include extended periods of non-occupancy. It is common for rental homes to be vacant for a time between tenants. This endorsement covers those periods without the need to re-write the policy.
     
  • Short-Term Rental Permission / Occasional Rental Permission. This endorsement is for homeowners who rent a room or their whole home on occasion. It covers rentals that last less than three months, typical for second homes and resort properties. This endorsement covers those periods without the need to convert a home insurance policy to a landlord policy.

Ordinance or Law / Building Code Upgrades
Buildings are regularly subject to building code upgrades, especially coastal properties. This endorsement covers costs to make changes to comply with state codes. It kicks in when you must repair your rental unit after a covered peril destroys it. It does not pay when you voluntarily remodel.

Should Landlords Require Tenants to Maintain Renters Insurance?
Yes. Tell your tenants they must buy renters insurance. It will cover their personal belongings, liability, and additional living expenses. Include it in the lease agreement so there is no confusion.

How do Tenants Add a Landlord to Their Renters Insurance Policy?
Landlords can be named as additional insured on a renters policy. Your tenant should speak to their insurance agent to add you. It benefits the landlord because landlords can make liability claims on their tenant's policy and use their own as backup. It is most beneficial if you own multiple properties.

You should also require your tenants to add you as an interested party. Then, the renters insurance company will notify you if your tenant cancels or does not renew their policy.

Always get a proof of insurance certificate from your renters for peace of mind and intelligent due diligence.

How Much Does Universal Property & Casualty Landlord Insurance Cost?
Universal P&C landlord insurance prices vary by state. The price also depends on the endorsements you choose. However, expect to pay 25% to 30% more than you would pay for home insurance.

Is Universal Property & Casualty a Good Insurance Company?
Universal Property & Casualty Insurance prides itself on the work it does with the community.

They are accredited by the Better Business Bureau and have a rating of A+.

Universal Property & Casualty Insurance Demotech Rating
Universal Property & Casualty Insurance has a Demotech Financial Stability Rating of A-, Exceptional.

Universal Property & Casualty Landlord Insurance Claims
Universal Property & Casualty Insurance has an online claims portal that also allows you to track the claim. Use the portal to make a claim 24 hours a day.

How to File a Universal Property & Casualty Claim
To file a claim, they encourage all policyholders to use their online claim portal.

Universal Property & Casualty Claims Phone Number
Call 800.470.0599 to file a claim over the phone.

Universal Property & Casualty Insurance Company Address
1110 W. Commercial Blvd, Fort Lauderdale, FL 33309

Universal Property & Casualty Landlord Insurance Quote
Young Alfred is a certified Universal Property & Casualty landlord insurance agency licensed in all 50 states. Contact us for a no-obligation quote. We are here to help and promise no spam calls, and we do not sell your personal information.

Hope that helps!

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Young Alfred