If you are a resident of Florida, you may be wondering if Florida rental property insurance is truly necessary if you already have homeowners insurance. Rental property insurance covers the risks you face when renting out your home or condo in Florida. This coverage includes property damage, liability costs, and loss of rental income for landlords renting a property.
You may be thinking, “I already have homeowners insurance. Why do I need rental property insurance too?” Having tenants in a rental property faces risks that homeowners insurance will not cover, especially if you are planning on leasing for long periods of time. The type of insurance you need will depend on how often you rent out your home as well as how long your tenants stay.
Long-Term Renting
If you have a vacation home in Florida that you rent out to a single person, couple, or family for six months or longer, it is a good idea to purchase Florida rental property insurance. This also goes for renting your primary home, if you rent for more than six months at a time. Renting out a house to tenants exposes you to liabilities relating to tenants and their guests. Your homeowners insurance will not cover these risks unless you are residing in the home.
Infrequent Short-Term Renting
Perhaps you only rent out your property for short periods of time, like a week or a few weekends. Your homeowners insurance may cover the risk as long as you give notice to your insurer. If this is not standard to your homeowners insurance policy, you may need to purchase an endorsement from the insurer to extend your coverage to temporary rentals.
Frequent Short-Term Renting
If you plan on regularly renting out your property to different people for short periods of time, your homeowners insurance and rental property insurance both may not provide coverage as your property may be considered a business. You may need to instead purchase a form of commercial property insurance.
HH Insurance
At HH Insurance, our team is focused on providing a world-class experience to you and meeting your needs to be a great insurance partner. We work with exclusive insurance markets that deliver you better coverage at the lowest rates. Get in touch with us today to get the best Florida rental property insurance rates and coverage. Our specialists are ready to answer all your questions.
**This blog provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverage. These definitions do not alter or modify the terms of any insurance contract.