Aside from living in South Florida and dealing with tropical storms, hurricanes, sinkholes, and the occasional tornado, property investors seem to be more concerned about their tenants and possible liabilities and claims that can be brought against them more so than the previously mentioned catastrophes. Even with the threats that loom over property owners some dissuade the threats and protection against potential liabilities and still choose to not insure their property. In some cases the property owner has every intent to be protected against such catastrophes but unbeknown to them are being underinsured. It is important that not only property owners investing in rental properties, but all property owners for that matter are educated in the types of policies and coverage that will best fit their needs in order to avoid being under insured, avoid having a claim denied and or have a claim short paid. As South Florida property insurance attorneys we stress the importance of knowledge in this field to not only our clients but the general public in hopes of avoiding situations that can prove to be much more costly to the property owner in the long run.
Some property owners are under the impression that a basic HO3 Homeowners insurance policy will be sufficient if they suddenly decide to rent out their home. Not only is this a violation and exclusion under many homeowners insurance policies, but this leaves the property owner at risk of not being insured, should an event call for such protection. Having a separate land lord policy tailored specifically towards rental properties is essential. Yes, your homeowners insurance covers your property if it burns down, your possessions if there is a theft, and medical and legal bills should someone get injured on your property, but the problem is, that homeowner’s insurance might not offer protection if you decide to rent out your home; Landlord insurance does.
In some cases your homeowner’s HO3 policy may insure your property while it being rented, but this is only for a short time, as companies are aware of the risks involved in insuring a property and won’t extend such coverage for an extended period of time. The risk is not only higher for the insurance company but also higher for the property owner when a property owner rents out their property on a full-time basis. The property owner has an increased responsibility for injuries on the property, whether to his or her tenants or his or her tenants’ guests. Land lords also experience more claims on tenant-occupied properties, because tenants typically don’t care for the properties as well as the owners would. Should you experience property damage caused directly by your tenant it is imperative that you are covered by you insurance provider as the out of pocket costs to fix even a small neglected plumbing leak can amount to thousands of dollars. As South Florida property damage lawyers we recommend that any property owner looking to rent out a property consider looking into land lord insurance policies which vary from Dp1,Dp2 and Dp3, each carry their own benefits and the higher the number the more coverage. Overall it is important that as a property owner you obtain a policy that is geared to protect your best interest.
Should you or any one you know have experienced property damage in your rental property caused by not only a neglectful tenant but any factor please feel free to call the our law firm dedicated to fighting these property damage claims at the number listed below. Miami-Dade homeowner’s insurance attorneys are here to assist you 24/7. We can be reached at 305-764-9907or 1888-413-8353