Landlord insurance, or dwelling fire insurance, covers the structure of a rental property, liability claims, and loss of rental income. Unlike standard homeowner insurance, it is specifically tailored for properties where the owner does not reside.
How It Applies to Florida Landlords
In Florida, where hurricanes and tropical storms are major risks, having adequate landlord insurance is critical. It covers the landlord's building from perils like fire, wind, and lightning, while also providing liability coverage if a tenant is injured due to a property defect. Importantly, it does not cover the tenant’s personal property, which is why landlords should strongly encourage (or require) tenants to carry their own renters insurance. Landlords must also ensure their policy includes "loss of rent" coverage, which compensates for lost income if a covered peril makes the unit uninhabitable.
Key Takeaways
- Standard homeowners insurance may be void if you rent the property out without notifying your carrier.
- Include a lease requirement for tenants to obtain their own renters insurance to limit your liability.
- Verify that your policy covers wind damage, a critical necessity in the Florida market.