As a property investor, your insurance needs are more complex than the average homeowner. Some insurance agencies are unfamiliar with the requirements of investment properties, particularly ones purchased in the name of an entity such as a land trust, LLC, or a corporation. At L & M Insurance Group, we have a lot of experience working with property investors and others with complex real estate insurance needs.
Types of Investment Property Insurance
Whether you intend to buy an investment property and flip it, or install a tenant, we represent many companies who are happy to insure your investment property. These companies offer a variety of policies tailored to the needs of property investors, including:
DP3 Dwelling Fire—Dwelling Fire policies provide coverage for residential buildings that are not owner occupied, but are usually rented to others. The most popular version of this policy is called a DP3. It provides coverage for the building’s structure from all perils except those specifically excluded in the policy, as well as personal liability and loss of use. It is also a replacement cost policy, and we consider it one of the best non-owner occupied policies on the market.
Builder’s Risk—This policy provides coverage for damage to the insured structure and liability coverage during a renovation period. We can write these policies in terms of two, three, four, five, six, or 12 months. Renovations need to improve the property by 50 percent of its value to qualify for a Builder’s Risk policy, so if your property renovations are only cosmetic, you may insure your property with a Vacant Dwelling policy (see below).
Vacant Dwelling—In addition to being appropriate for a property that doesn’t qualify for a Builder’s Risk policy, Vacant Dwelling also provides coverage for property investors who own rental property and are between tenants or are trying to sell a property no one lives in.
Ready to insure your Property
So whether you’re a property investor who buys and flips homes or one who rents to tenants, we’ve got you covered, even during the renovation process. Please call L & M Insurance Group at 813-672-4100 or email us if you’d like to know more about how we can help you protect your investments. For more than 30 years, L & M Insurance Group has helped customers within Riverview, Brandon, Gibsonton, Apollo Beach and the Tampa Bay area.
