Fort Lauderdale, FL · Member since 2016 · 34 posts · 4 votes
Hello All,
I am looking into acquiring my first rental property and am starting to browse through a variety of different properties and also starting to calculate the cash flow on these properties. Does anyone have any knowledge of the average cost of landloard insurance for rental properties in florida?
This question greatly depends upon where the house is located. Nearest coastline is an important factor, as well as neighborhood the property is in. Coverage levels and house value are also important things to consider. I myself do not write in Florida but from what I see you could need to allocate as much as $5000 towards insurance annually, maybe more. To increase your odds of finding a good rate, always get multiple quotes from many different companies. If you can as well, go with an independent insurance agency as they have multiple carriers they can write with (along with other benefits).
I assume you are investing locally in the S FL market so rates are going to be substantially higher than North or Central FL. Concrete block will keep your costs lower than frame. If the property is more than 30 years old you will need a Four Point Inspection (verifies the roof, AC, electrical and plumbing are all in working order). A Wind Loss Mitigation Report (WLM) will also help reduce your cost assuming the property is older than 2002.
Outside of those general guidelines it is impossible to provide a useful estimate. Its like asking how much does someone pay for a car. Some people buy Bentleys and others buy scooters - wildly different costs for sure! Your best bet is to follow the guidelines and build a strong relationship with an insurance agent who can provide quotes for properties you are considering purchasing.
Hi Tyler, a rental property I have for example is in Plantation west of the turnpike was paying around $3800 before I got in touch with another agent and he did some changes, like a rental policy not an owner, I now pay about $2700, it was built in 1965, 3 bed 2 bath 2CG pool not a flood zone (for now) Like Mr. Townsend mention you need the wind loss mitigation and 4 point. this is just an example, it varies so much depending on location and property style. I use Brightway Insurance in Cooper City Loyd is my agent, ext 2212, you can tell them my name, I do not get any benefit out of it.