Which Property Insurance? (South Florida Area)

6 Replies

I see there are many different types of property insurance available. I am in south florida and looking to insure one of my rental properties. It is a townhouse if that makes a difference. Does anyone know what is typically covered by the HOA's insurance policy?

Any good sources/articles I should read that can better inform me of the different types of insurance coverage available? 

Thanks in advance!

Your HOA doc.s will tell you who is responsible for the roof. With fee simple townhouses it can go either way.

Some communities of townhouses in South Florida function like single family homes, so if that is the case you should go with the basic homeowners' insurance.

However, if there is a master policy, you may go with the HO6 policy for unit owners.  This policy is used to fill the gaps between the coverage you need and the master insurance policy of the condominium. It covers damage to personal property within the condominium as well as personal liabilities.  The policy should be modified to supplement the master insurance policy.

As Mr. Brooks said, find out what the HOA covers - then you'd know what you need.

Thanks for the information, guys.

Any other recommendations on condo insurance? Has anyone had good experience with a particular insurance company?

I don't want to start a new thread so hoping this will get some more coverage. Anyhow, here is the information I got from the company that does the insurance for my HOA:

Unit Owners would purchase an HO6 policy (condominium unit owners) which will insure the cabinets,appliances, wall coverings,floor coverings as well as the unit owners personal possessions.

The Association insures the buildings, drywall out.

So it is my understanding the HOA will cover the roof and the exterior. (Note: this is a town home). I got a quote with the following coverages:

Dwelling: $15,00

Personal Property: $2,000

Loss of Use: $1,200

Liability Limits: $100,000

Medical Payments: $2,000

Personal Property Replacement Cost; Yes

Lost Assessment: $2,000

Condo Special Dwelling Coverage: Yes

Hurricane Deductible: $500

Estimated premium: $490

Any thoughts/recommendations on this? Do I really need personal property since I am renting out? Excluding the appliances, I didn't purchase the furniture, tv's, etc. so I am wondering if it is really needed? 

If anyone can explain anything else about these quotes, would be great. I am not all too familiar with insurance coverage.

Thanks everyone!

You need to tell the insurance broker that you are dealing with that it's going to be a rental. You won't need personal property insurance except for the appliances, if you are providing those. I would probably get higher liability, unless you already have a personal umbrella liability policy.

Call some local independent brokers who work with investors/landlords. You can probably find some through google, or through recommendations from other local investors

Thought I would let everyone know that it appears that a DP3 policy (as opposed to HO6) is the way to go, at least in my scenario where my properties are part of a HOA. Reason for this is because the HOA covers the dwelling-out (i.e. the exterior portion of the building, roof).

The DP3 policy doesn't offer any dwelling coverage, but that is (or appears) to be okay because the HOA has their insurance policy for dwelling coverage (what I did was contact the HOA for the certificates of master insurance policy). Essentially, the DP3 policy covers everything inside. My coverage is up to $25,000 which I think is sufficient should an unfortunate disaster occur.

One caveat, liability is not included. However, I have been advised by my insurance agent that a Master liability policy can cover multiple rental properties.

My properties are in an LLC, which I believe to be another reason why HO6 would not work.

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