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The Landlord Insurance Policy: Six Important Clauses You Should Understand

Many people live in their homes for some time, and then elect to lease the home out.  While this can be a great way to generate extra income, it is important that new landlords understand how their insurance may be affected.  Standard insurance policies, like the one you likely had on your home before leasing it, assume that the homeowner lives in the property.  If the landlord does not notify the insurance company that he or she no longer lives at the home and it is being used as a rental, their claim will be denied.  The policy must be listed as a landlord policy in order for you to maintain coverage.

What is the difference between homeowner’s insurance and landlord insurance?

            The primary difference stems from the varying risks involved.  The risks involved with rentals and different than those that come with homeowner occupied properties. Landlord insurance will cover typical landlord issues, such as loss of rent.  They also have a different pricing structure.

Always be sure you are prepared. It is essential that you have a proper insurance policy in order to protect you from losing rent or assets that would otherwise be recoverable.

   Our Florida property damage claim lawyers have listed six important clauses contained within a landlord policy:

  1. Dwelling coverage with replacement cost: Dwelling coverage covers the home itself, including structural issues, plumbing, and more.  You should consider obtaining a policy that offers guaranteed replacement costs, which will replace the property even if the cost to replace exceeds what you were originally insured for.
  2. Water and flood coverage: Flood insurance is typically an extra policy.  It will cover water damage to the home and contents.
  3. Personal property protection: This protects the contents of the home, such as carpets, furniture, appliances, and the like.  Not all landlords obtain this coverage, but you should weigh the costs versus the benefits.
  4. Acts of nature: Some policies cover acts of nature, while others exclude them.  In Florida, hurricanes are generally only covered with an outside policy.  Know your coverage and weigh the costs to add in acts of nature.
  5. Fair rental income protection: This clause allows for collection of fair market value rent when the property cannot be rented for a certain amount of time due to repairs or catastrophic damage.  It will not generally cover losses associated with evicting tenants.  This coverage can be important in the event of damage, but weigh its impact on your premium.
  6. Liability or medical coverage: This is coverage that every landlord should really have.  It protects you in the event your tenant or an employee sues you for injuries sustained on the property.  It will protect you from paying medical expenses out of pocket.  This policy will have cap limits and landlords with multiple rental properties may wish to consider obtaining an umbrella policy to cover you and your assets in the event of a liability claim.

 

Greenberg Stone and Urbano:  Experienced South Florida Insurance Attorneys    

            If you are struggling to obtain coverage for your property damage or lost rental income, the Miami Homeowner’s Insurance Attorneys at Greenberg Stone and Urbano are here to help.  For over 130 collective years, we have handled insurance disputes across the state, including landlord insurance issues.  Our attorneys will aggressively fight to see that you obtain the coverage for your losses that you deserve.  Our exceptional results have earned us an AV rating from Martindale Hubbell and recognition as one of South Florida’s top firms by the Miami Herald.   Call us at (888) 499-9700 or (305) 595-2400 or visit our website to schedule your initial consultation.

 

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