What You Need to Know About Florida Home Insurance When You Don’t Live There

It is a wonderful thing when you reach that time in your life where you are able to purchase a second home.  Sometimes it is for investment purposes, like a rental property or just for leisure like a vacation home. Whatever you need Florida home insurance for, if you don’t plan on making this home your primary one, there are some things you need to know that will allow you to make sure that you have the right coverage and the peace of mind in knowing that should disaster befall your home in Florida, that your policy will back you up financially if you sustain damages.   

If Your Home Is A Rental

In case you didn’t know, the regular homeowners policy in most any state where your property is a rental, vacation-type or otherwise, is not sufficient to satisfy regulations. It is also not enough to take care of business should your property sustain damage at the hands of a renter or a tenant.  These kinds of properties have their own types of policies and you need to know what they are and why you need them. It is not enough to say, “we didn’t know,” to your agent if there is incorrect coverage for your home. The worst thing that can possibly happen is to hear, “your policy does not cover that.”  Get in the know now and check out https://floridainsurancequotes.net/home-insurance/control-home-insurance-costs-winter/, before you get left out in the cold.

Now, if you have a second home and every once in a while, say 2 or 3 times a year you rent it out to friends or friends of friends, a regular policy will usually suffice. We’re talking about a rental property that takes in renters on a regular basis.  These are the types of scenarios that the insurance companies will care about and scrutinize for coverage should there be something that happens.

Regular Rentals Require Different Coverage

There are different levels of coverage when you have rental property.  What you need really depends on what you want covered and how much. It also depends on state regulations and your own insurance company’s requirements as well. It is best to sit down with an agent and discuss the particular interests and uses your second home will have to be sure that you are getting the right coverage.  Typical extreme weather conditions in your home’s area need to be considered as well. If your home is subject to hurricane damage, you will need to make sure that you are covered for that and what you need to know about securing your home properly so that you will. Discuss any of those specifics with your agent to be sure that you understand what your responsibility is in the situation of extreme weather conditions.  Below are the usual levels of coverage for a rental property.  

Are There Different Types of Florida Home Insurance?

The first and most basic rental policy is the DP-1 policy.  All this policy usually will cover are the very basics for fire or vandalism, because that can happen in the case of a rental property.  Not everyone who rents from you is going to care about maintaining your home or even make you aware that they’ve damaged anything. The police need to be notified and forms filled out, but you don’t want to be the one left holding the bag if a renter doesn’t do the right thing by you and your house.  All you get with this coverage for damages is the actual value of something. It will likely not cover all that is needed to replace what has been damaged. You will want to discuss this in detail with your agent.  

A DP-2 policy is the second level of coverage for rental property. It covers the basics that you should have in order to rent out your property plus some others.  It covers things like hail damage, sustained damage from a windstorm, the usual fire coverage and also vandalism. Most of the time, these policies will also cover you if a car collides into your home.  

The DP-3 policy is what most homeowners who rent really want when they are seeking coverage on their second home.  This policy is more of an open policy, meaning unless the policy specifically says, “it won’t cover______, ” then it is covered.  It is more money than the other two but the benefit of this type of coverage is that it covers the actual cost of replacement rather than just cash value of something that is depreciated because it was 10 years old when it was damaged.  The difference is significant when you consider the cash value of a 15 year roof versus the cost of paying to replace one with a new one. If you are concerned about out-of-pocket expenses for damages, then this policy is likely the one you are looking for.  Make sure you understand what you are getting before you sign anything.  

Additional Types of Florida Home Insurance To Consider

There are other things to consider taking advantage of for coverage that you may not be aware of.  For instance, if your furnace breaks and needs replacing, that can be a costly expense for your rental property that you will need to pay to have replaced, meanwhile you cannot rent it out while it is broken.  There are types of policies that you can purchase additionally that will cover those expenses so you don’t have to pay them out-of-pocket. There are also policies for loss of rental income, should your home sustain damage and you are not able to rent it out. Landlord’s liability insurance is also available and always advised.  You will want to be protected from slip-and-fall injuries or other types of personal injury claims against you. 

A bit of research here and working with a reputable agent will help you make sure you understand your rights and responsibilities for insurance as a landlord.  It is good to know what is the right coverage and great to have!