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Insurance for Real Estate Investors

What Kind of Insurance do you need as a Real Estate Investor and other Insurance Help to protect your real estate investment

As a real estate investor, you have specialized needs when it comes to insuring investment properties. You may have multiple properties, some of which may be vacant. And those properties may be titled in the name of an individual, an LLC, a corporation, or a land trust. Insurance for real estate investors is different than insurance for home owners. You may have questions about which type of policy to buy, and what it covers.

L & M Insurance Group has extensive experience helping real estate investors with their unique insurance needs. On March 3, L & M’s president, Mark Holley, along with colleague Larry Johnson, made a presentation to the general meeting of the Suncoast Real Estate Investors Association (SREIA) covering several points of interest to real estate investors. Here is some key information from the presentation:

DP3 vs. DP1 policies

The DP3 and DP1 policies are two types of tenant-occupied policies that real estate investors should consider. Typically, the DP1 form only covers named perils that are listed on the policy, including fire, smoke, wind, hail, lightning, explosion, and so on. DP3 policies cover all perils except those that are specifically excluded in the policy documents. Basically, the DP3 form is for property owners who want a tenant-occupied policy with all the bells and whistles. If you need to save money, or are interested in assuming more risk yourself, choose the DP1 form. Be sure to talk to your agent about what is included and what isn’t, so you can get the policy you need.

Builder’s risk vs. vacant dwelling

Builder’s risk provides insurance coverage for either residential or commercial buildings under construction or renovation. Vacant dwelling covers a dwelling that is unoccupied.

One thing to remember is that the liability coverage included on a builder’s risk policy doesn’t cover exposure to claims related to renovation, so the people you hire should carry general liability and list you on their policy as an additional insured.

4 point inspections and wind mitigation reports

If you own a home or rental property older than 30-40 years, a homeowners company may require a 4 point inspection before they’ll sell you a policy. A 4 point inspection looks at the four main systems of the property: the roof, the plumbing system, the HVAC system, and the electrical system. These inspections generally cost between $75-$100, and are good for three years. If the inspection reveals something unacceptable to the underwriting rules of the insurance company, they may decline to cover you. You may then choose to fix the problem(s), or try another insurance company. Your independent L & M Insurance Group agent can help you determine which company will be most likely to cover your property.

Even if the insurance company will write the policy, certain things will cause premiums to be higher, including aluminum wiring, an old or patched roof, and plumbing or heating/cooling systems that have not been kept updated.

Wind mitigation reports tell us about your roof, and what credits can be applied to your policy. The inspector will examine and report on your roof’s covering, roof deck and roof wall attachment, roof geometry (hip, flat, or other), secondary water resistance, and opening protection.

In addition to certain physical features that cause your premiums to be higher, certain situations may also increase the cost of your insurance. These include lapses in coverage, short-term rentals, and property being held in a land trust or a land trust with multiple entities.

Our partnership with you

L & M Insurance Group’s goal is to write your real estate investment insurance policy for the best price with a company that will pay your claim if you have one. That’s one of the reasons we need full and accurate information about your properties when we’re quoting your policy. You can help us by answering our questions truthfully and fully. We have markets that will write almost any kind of situation, but we need to know certain details in order to place your policy with a company that is right for you.

Have questions? Please give us a call at 813-672-4100, and let L & M Insurance Group help you protect your real estate investments. 

Are you sheltering in place due to the COVID-19 coronavirus? We can serve your insurance needs without seeing you in person! Please call us at 813-672-4100 or email us by clicking here if you need an insurance quote, have to make a claim, or have any questions about your insurance needs. We also have a live chat feature on our website.

Our office is temporarily closed to the public in order for us to follow social distancing guidelines and protect the health of our employees and customers. If you need to make a cash payment, please call our office at 813-672-4100 for instructions.

A Wind Mitigation Report Can Lower Your Homeowners Insurance Premium

Saving Money on Homeowners Insurance with Wind Mitigation Inspection Report

Home Insurance Tips for Floridians Including Brandon, Riverview, and Tampa

Wind Mitigation Report Reduces Homeowners InsuranceDid you know some common construction features of Florida homes could save you money on your homeowners insurance? During a hurricane, most serious damage comes from wind and water intrusion. Wind mitigation features help your home withstand high wind damage from hurricanes or other wind events. The Florida Department of Insurance estimates that up to 70% of your insurance premium can be attributed to wind damage risk. By law, Florida insurers must offer customers discounts and credits for construction features and home improvements that reduce potential damage from wind. Having a wind mitigation inspection and filing the report with your insurance company could save you hundreds of dollars on your policy each year. A wind mitigation inspection report runs around $75, but in many cases it more than pays for itself in discounts to your homeowners insurance.

Most Florida homes built after 2002 were constructed with many wind resistive features, so you may already be receiving some discounts. However, if you own an older home and have replaced your roof, you should talk to your homeowners insurance agent to see if a wind mitigation report will save you money on your insurance.

During a wind mitigation inspection, the inspector will examine several areas of your home, looking for features that improve your home’s wind resistance. Features that may qualify you for discounts include:

  • The shape of your roof (hip vs. gable)
  • How Your roof deck is sealed and attached
  • Roof to wall connectors
  • Gable-end bracing
  • Windows covered with shatterproof glass or storm shutters
  • Hurricane-rated doors (including the garage door)
  • Special bracing for the garage door

At L & M Insurance Group, our agents are familiar with wind mitigation reports and discounts. Please call us at 813-672-4100 if you have any questions about whether or not you should schedule a wind mitigation inspection.