Fort Lauderdale Landlord Insurance

Your Complete Guide to Fort Lauderdale, FL Landlord Insurance

Maybe you own a small bungalow that you lease to young couples in Harbor Beach. Or perhaps you own a house in Beverly Heights that you rent out to families with children. Regardless of what type of property you own or which Fort Lauderdale neighborhood it is located in, you will want to be sure to cover your investment with a suitable landlord insurance policy.

Independent insurance agents can help find the best policy to meet your coverage needs. These agents can provide you with a variety of customized landlord insurance quotes so you can be sure you are getting your policy at a competitive price. Contact an insurance agent in or near Fort Lauderdale to learn more. 

What Is Landlord Insurance?

Landlord insurance is a type of homeowners insurance that is designed to meet the specific needs of property owners who have renters. Because you can only purchase a traditional homeowners insurance policy for a property you live in yourself, this coverage is necessary if you want to insure your rental properties. 

Landlord insurance is not required by law, but most mortgage lenders will require you to have it while you are still paying for the property.

Rental Statistics for Fort Lauderdale

  • Percentage of homes that are renter-occupied in Florida: 36.7%
  • Percentage of homes that are renter-occupied in Fort Lauderdale: 48.2%
  • Average market rent in Florida: $1,449
  • Average market rent in Fort Lauderdale: $1,653

A significant portion of homes in Fort Lauderdale are renter-occupied, and the average rent paid in this city is higher than throughout much of this state. This makes Fort Lauderdale a good place to be a landlord. You can protect the investment you have made in your rental property by purchasing a comprehensive landlord insurance policy.

How Much Does Landlord Insurance Cost in Fort Lauderdale, FL?

For the most part, you can expect your landlord insurance policy to cost you approximately 15% to 20% more than you would pay for a traditional homeowners policy for the same property. Some factors that can affect your rates include:

  • The age, size, and value of the home
  • Whether the house has exterior features like a carport or pool
  • The type of home you are insuring (e.g. single-family detached home, multi-family home, mobile home, fabricated home, etc.)
  • The number of tenants you have living in your property
  • Your previous claims history and credit rating
  • The crime rate and weather risks in the vicinity of the home

Every insurance company has a different method for deciding on rates, so comparison-shopping is a good way to find the best price for a policy that offers the coverage you want.

Structural Coverage for Fort Lauderdale Rental Homes

As the property owner, you are responsible for repairing your home’s structure if something should happen to it. Landlord insurance can cover you against most of the risks you face as a property owner in Fort Lauderdale, including structural damage caused by severe weather events, accidental fires, and property crimes. 

Catastrophic Events in Florida

  • Number of federally declared disasters in Florida: 122
  • Most common reasons for disasters in the state: Wildfires and Hurricanes
  • Avg. number of tornadoes per year in Florida: 54.6
  • Avg. amount of property damage per year in FL: $3.45 billion
  • 1 in 15 insured homes has a claim each year.

Residents of Fort Lauderdale see their fair share of natural disasters. Severe weather events can significantly damage homes and outlying structures like sheds, carports, and detached garages.  While tornado activity in this city is significantly lower than the state average, the risk still exists. In 1980, an F3 twister touched down less than three miles from the Fort Lauderdale city center and caused more than $5 million in damage.

Hurricanes pose a significant risk to this city. The heavy winds and rainfalls can damage roofs, break windows, and cause other serious damage to homes. While your landlord insurance policy can cover the cost to repair this damage, it will not cover flood damage, even if it is the direct result of a covered hurricane. Fortunately, an independent insurance agent can help you secure a supplementary flood insurance policy so that you are fully protected.

Do Landlords in Fort Lauderdale Need Contents Coverage?

You may assume that because your tenants are responsible for covering their own property with renters insurance, you do not need contents coverage to be included as part of your landlord insurance policy. For many landlords, however, this need still exists. 

If your rental home includes property belonging to you, such as furniture, appliances, or decorative items like carpeting, light fixtures and wallpaper, these items can be covered by your landlord insurance policy. Whether you wish to include contents coverage in your landlord insurance policy is up to you. If interested, talk to your local insurance agent for help ensuring that your contents coverage limits are high enough.

Fort Lauderdale Landlords Need Sufficient Liability Coverage

One of the most important features of your landlord insurance policy is coverage against liability lawsuits. We live in a society that loves to sue, so this liability coverage can prove particularly important. Even if the courts rule in your favor, your legal defense fees, court costs, and other expenses can add up quickly if you are uninsured. 

Landlord liability insurance is designed to absorb many of your costs if you are sued for a covered event. This may happen if a tenant or one of their guests is injured on your property due to negligence in upkeep, or if bad wiring in your home causes a fire that damages your tenants’ property or causes them injury. 

Your independent insurance agent can explain more about the many ways that liability coverage can protect you in your role as a landlord. Your agent can also help you purchase an affordable umbrella insurance policy if you wish to have even more liability coverage than your landlord insurance policy offers.

Additional Coverage for Fort Lauderdale’s Landlords

Some landlord insurance policies offer the opportunity to purchase additional coverage against a few risks that are unique to landlords. If interested, your insurance agent can help you find an insurer that offers optional coverage such as:

  • Rent guarantee coverage: Covers your loss of income if a deadbeat tenant fails to pay rent for an extended period.
  • Loss of income coverage: Covers the rent lost if your property is damaged by a covered event and is rendered uninhabitable.
  • Malicious damage coverage: Covers repair costs if your house is purposely damaged by your tenants or their guest.

An independent insurance agent can help you review the coverage offered by a variety of different providers so that you can find the policy that best meets your coverage and budgetary needs.

Why Work with an Independent Insurance Agent?

A solid landlord insurance policy can increase the likelihood that your rental property will serve as an asset rather than a liability. Local independent insurance agents are available to help you compare customized quotes and policy offerings so you can choose the landlord insurance policy that is best for you.

Find an insurance agent in or near Fort Lauderdale to get started.

Sources © 2019, Consumer Agent Portal, LLC. All rights reserved.

https://www.fema.gov/data-visualization-disaster-declarations-states-and-counties
http://www.neighborhoodscout.com/
http://www.city-data.com/

© 2019, Consumer Agent Portal, LLC. All rights reserved.

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