Property Investors Have Special Insurance Needs

We Understand and Meet Those Needs

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More and more investors are buying properties not just in their personal name, but in the name of land trusts, family or estate trusts, LLC’s, and corporations. What you may discover when trying to insure these properties is apprehension on behalf of the insurance agencies–many clearly don’t understand your needs. We want you to know we have made a special effort to seek out insurance providers that are eager to have your business. We represent nearly a dozen companies to shop your property and liability insurance with–these companies welcome purchases in the name of entities.

 

DP1

This is the most basic insurance policy available for rental properties. It offers the most basic coverage of all the rental property policies. It contains no bells and no whistles. The most common reason for a landlord to purchase this type of insurance would be to reduce costs. A DP1 policy is a named perils policy, this means that all the perils that are insured against are specifically listed in the policy. Most DP1 policies will not cover theft, burglary, vandalism and & malicious mischief, accidental water damage or replacement cost coverage on any contents you might be insuring–in fact, some companies will not provide replacement cost coverage on the dwelling on a DP1.– Be sure to communicate clearly with your agent about what you want covered.

 

DP3

This policy is much more extensive in coverage and is often referred to as an open perils policy, which means it provides coverage against all perils, with the exception of a few exclusions specifically listed in the policy. The DP3 is a replacement cost policy, can provide coverage for your contents and provide loss of rents coverage. Overall, the DP3 policy is an excellent policy and is one of the best non-owner occupied policies on the market.

 

Liability Insurance/Medical Payments

This coverage will cover you in the event you are sued for bodily injury or property damage of other peoples property. Coverage amounts range from $100,000 to $1,000,000–with $300,000 being the most common. Medical payments coverage is usually included in a dwelling policy and offers a smaller amount of coverage ($1,000-$5,000) to cover medical bills resulting form injuries that occur on your property. Unlike liability coverage, you do not need to be legally liable for a medical payment claim to be paid. Important:   Liability/Medical payments coverage is not included in a policy where the property is purchased in the name of an entity (LLC, Corp or Trust) and must be purchased separately–we can accommodate this as well.

 

Are You Renovating?

A Builders Risk policy will provide coverage for damage done to the insured structure, and provide liability during the renovation process. These policies can be written in terms of 2, 3, 4, 5, 6, or 12 months. Remember to qualify for a builders risk policy your renovations need to improve the property by 50% of it’s value. We now represent a company that only requires a 20% improvement in the structure to quality for a builder risk policy–however the shortest term they write is 6 month and the liability must be written separately. When the purchase is only requiring cosmetic changes that are not extensive enough to qualify for a builders risk policy, we can insure it as a Vacant Dwelling.

 

When we work with you, we evaluate your situation and needs to properly insure your property–we become your insurance partner so you can focus on what you do best–buy, sell and manage property.  Call us today to discuss your insurance needs–813-672-4100.  Or click this link to contact us.

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.

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