Landlord (DP-3) insurance for rental properties

Landlord insurance is a policy for a home you rent out. It typically covers the structure against fire, wind and other covered perils, appliances you leave for tenants, lost rent after a covered loss, and your liability if a tenant or guest is hurt. It does not cover your tenant's belongings, and loss-of-rent coverage usually lasts only for a set period.

DP-1 insures the dwelling only against specific named perils such as fire, lightning and windstorm, while DP-3 is an "all-risks" form that covers the dwelling for everything the policy does not exclude, such as flood or earthquake. How claims are paid and which extras are included, such as liability or loss of rent, vary by policy. A licensed agent can compare forms for your property.

If you rent out a home for months at a time, you will likely need a landlord (rental dwelling) policy, because a standard homeowners policy may not cover losses while the home is rented out. Your mortgage lender or association may also have insurance requirements, so check your loan and governing documents. A licensed agent can review your rental situation.

Partly: landlord insurance generally pays for damage from covered events like fire or wind, but not ordinary wear and tear, and coverage for damage a tenant causes varies by policy. A landlord can also claim damages against the tenant's security deposit by sending the written notice Florida requires within 30 days after the tenancy ends (s. 83.49). Ask your agent how your policy treats tenant-caused damage.

In most cases yes: Florida's residential landlord-tenant law (Chapter 83) does not specifically require or prohibit renters insurance, so it comes down to the lease terms. Triple-I notes many landlords require it before signing, since a landlord's policy does not cover a tenant's belongings. Landlords should have a Florida attorney review the lease wording, and tenants should read the lease before signing.

Landlord insurance generally does not replace rent just because a unit is empty between tenants; loss-of-rent coverage applies when a covered loss, like a fire, makes the unit unrentable. Vacancy can also limit property coverage: a standard homeowners form, for example, restricts vandalism coverage once a dwelling has been vacant more than 60 consecutive days. Ask how your policy defines vacancy.