Rental Home Insurance Coverage

Avoid Critical Mistakes When Selecting Your Policy

One of the most common mistakes landlords make is selecting a policy that fails to give comprehensive protection against damage and liability issues.  The purpose of this page is to give you essential information about rental property insurance that will help you to know the right questions to ask your insurer or agent.  Not understanding your choices could significantly impact your financial wellbeing.  Rental property insurance is different from regular homeowner 's coverage.  Read this article to learn more about steps Tampa area landlords need to take to know they are properly covered in the case of a loss.

Important Questions Landlords Need To Ask Their  Insurance Agent

Rental home insurance coverage

Do I have the right insurance for my rental property?

Rental home insurance is often overlooked and misunderstood by many landlords.  If you once lived in your rental home and still have the original homeowner’s policy, chances are good you do not have appropriate insurance coverage.  Policies created for owner-occupied properties often exclude coverage if you no longer live in the home.  With a traditional homeowner’s policy, the probability is high you are not covered for losses if the home has been rented out to another party.


What can I do to cover my rental home?

The first step to insuring your rental property is to set up a formal policy review with your insurance agent.  Do not delay taking this important step to protect your investment property and your financial stability.  If you don’t have a relationship with a Florida property insurance professional, contact us and we will be happy to refer you to a local agent who can help you to obtain the correct insurance coverage for your Tampa Bay rental home.  Due to the widely-varying areas throughout Tampa Bay, we recommend consulting with a local agency who has a thorough knowledge of the communities.  An expert agent can guide you through the issues and concerns that are specific to our region of Florida and help you to find the perfect plan for your needs.


Insurance Coverage Options

According to the State of Florida Department of Financial Services, there are four categories of perils covered by homeowners insurance:

1.  Structure – the dwelling itself

2.  Other Structures – Items such as sheds, fences, driveways and swimming pools

3.  Personal Property – The contents of the insured structures

4.  Loss of Use – also called ALE (Additional Living Expenses)

If you own an older home that has a detached garage or if your investment property includes a pool or spa, you will likely need to have expanded rental home insurance coverage to fully protect this structure.


Rental Home Insurance Coverage Options:

DP-1  Landlord Insurance Policy

This is the most basic type of property insurance covering specific named perils including:  fire, vandalism and some storm damage claims.

DP-2  Landlord Insurance Policy

This is an enhanced level of insurance that covers an enhanced level of specific named perils.  This level of coverage is specific to each insurer but all covered perils are identified.  Every other peril that is not specifically named are excluded from coverage.

DP-3  Landlord Insurance Policy

This is often referred to as an ‘Open Peril’ or ‘All Risk’ policy.  It is the broadest form of coverage and includes every form of peril unless specifically identified by the insurer.

BOP (Business Owner’s Policy)

This coverage is highly-specialized and tailored to the insurance needs of each owner on a case-by-case basis.  For more information on this type of policy please contact your licensed insurance agent.

H-06 (Condominium Owner’s Policy)

This coverage is designed to protect areas that are not covered in the Condominium Association’s Master Insurance Policy.  Covered items vary depending on each Condominium Association and location so it is important to carefully review your condominium documents with your insurance agent to ensure you have adequate protection for your investment home.

The Bottom Line:

  • You should ensure your rental property has liability insurance coverage.  Typical coverage amounts are between $500,000 to $1,000,000.

  • Get the very best insurance you can afford

  • Loss of Use coverage is strongly recommended (prolonged loss of rental income can be costly during lengthy repairs!)

  • Meeting with your insurance professional to review your coverage levels is essential and could potentially save you significant financial losses.