property investorsIf you own investment properties, you will want to make sure you have the right insurance coverage for your situation. Property insurance can protect you from property loss and liability lawsuits, and is an important part of successful property investing. Read on for an explanation of the various types of insurance you might need.

Who needs a Vacant Dwelling policy?

If you have an investment or primary home that has been vacant for 60 days or more, you need a Vacant Dwelling policy.

Who needs a Builder’s Risk policy?

If you’re doing renovation and increasing the value of your home by 50%, your property qualifies for the builder’s risk program.

What type of policy do I need to insure my tenant-occupied property?

There are two types of policies to choose from to insure your property correctly.

  1.  DP1 is a bare-bones, policy offering actual cash value coverage on your personal property.There is no burglary and theft coverage or coverage for accidental water damage. If your air conditioning unit is stolen, this policy will not pay for it to be replaced. If your plumbing leaks and floods the home, there is no coverage.
  2.  A DP3 policy covers everything the DP1 does except that it pays replacement cost instead of actual cash value. It also pays burglary and theft as well as accidental water damage. To protect your property properly, the DP3 is the better choice.

What if my property is in the name of an LLC or trust?

If your property is held in a trust or LLC , you must buy a separate liability policy.
More insurance carriers are available to choose from if your property is owned by an LLC rather than a trust.

We at L&M Insurance understand how properties held in a trust or LLC need to be insured.
In order to insure the property with the company that has the lowest rates and best coverage for you, we need complete and accurate information about the LLC or trust. You will get the most accurate quote if you are able to answer our agent’s questions fully and honestly. If possible, it helps us when insuring the property to have a copy of the trust.

Can I as an investor write multiple properties on the same liability policy?

Yes, as long as they are all in the same name, whether it be in an individual’s name or in the name of an LLC or trust.

When do I need a flood policy?

If your property is in a flood zone and you have a mortgage, you are required to have a flood policy.

What is the difference between sinkhole coverage and catastrophic ground coverage collapse?

If you have a sinkhole claim you can live in the home while it is being repaired. With catastrophic ground coverage collapse, your home has to be damaged to the extent that it is not livable.  Catastrophic ground coverage collapse is included in all DP and H03 policies.

Can I insure a property that has had a sinkhole claim?

Yes, once the repair has been signed off on by an licensed engineer.

When do I need a four point inspection in order to bind coverage on my new purchase?

If your property is older than 30 years.

How can a wind mitigation help me?

If your property is an older home and you have replaced the roof, a wind mitigation can save you hundreds on your property insurance. You can get a four point inspection and a wind mitigation for $95.00.

Please email us or call our office at 813-672-4100 with additional questions.

Mike Buice
Mike Buice is the principle owner of L&M Insurance Group, serving the insurance needs of Florida policyholders for more than 26 years. Although his background is in life insurance, annuities and financial planning, he has expanded L&M Insurance Group to encompass all lines including commercial, auto and home insurance. He believes in educating clients so they can make better insurance choices. Call him at 813-672-4100 with your insurance questions.

Leave a Reply

Your email address will not be published. Required fields are marked *