Property Insurance

First off I am no fan of the insurance industry, but I do consider insurance to be a necessary evil. I feel this way, because I know that adequate insurance coverage is a residential landlord’s first line of defense against possible financial ruin. So, I hold my nose and pay my insurance premiums in the hopes that I’ll never have to file a claim. And I highly recommend that all landlords in Florida carry the following two types of insurance coverage on their property:
1. Property and casualty insurance. Property and casualty or hazard insurance covers property owners from losses resulting from fire, storms and other catastrophic acts that could damage or destroy their property.
2. Flood insurance. Flood Insurance coverage is available for properties that are located in designated flood plains in communities that participate in the National Flood Insurance Program. The federal government administers the National Flood Insurance Program and private insurance companies issue the policies.

Insurers Now Use Credit-Based Insurance Scores to Calculate Policy Premiums

It shouldn’t come as any great surprise, that in today’s credit conscious society, a person’s credit history is the key element of credit-based insurance scores, which insurers use to calculate insurance policy premiums. According to insurers, independent studies have shown a link between credit history and insurance losses. And this strong correlation between financial instability and the probability of a loss is the main reason insurers cite, when they explain to insurance regulators, why so much emphasis is put on a person’s credit history when calculating policy premiums. Personally, I think that credit-based insurance scoring is great! I happen to be a financially responsible adult, who has excellent credit, and I feel very strongly that people who do the right thing and play by the rules should be rewarded. I also firmly believe that people who are financially irresponsible, should be held accountable for their actions and pay the consequences!

Adequate Insurance Coverage Can Be Expensive

Unless you’ve been living on Mars for the past few years, you should know that the cost of any type of insurance in Florida has gone through the stratosphere. And depending upon where you’re located, the insurance rates for property and casualty and general liability insurance coverage for residential and commercial property can be quite expensive. Insurance carriers have also made their policy terms and conditions more stringent than ever before. Today, landlords in Florida have to contend with greedy insurance carriers, who continually:
1. Increases rates.
2. Refuse to write new policies.
3. Exclude certain coverage.
4. Require higher deductibles
5. Refuse to write umbrella policies with high limits.

Consider Hiring a Risk Consultant to Help You Save Money on Insurance Costs

I am usually not a big fan of so-called consultants. And that’s probably because I happen to believe that there’s a lot of truth to the old joke: “A consultant is someone who uses your watch to tell you what time it is and then charges you for it.” However, it may make financial sense for you to hire a so-called risk consultant, on a flat fee basis, to do an in-depth analysis of your insurance needs, and then recommend the best and least expensive types of coverage that would protect you from possible financial ruin. To find a risk consultant in your area, look in the online version of your local Yellow Pages under risk management or insurance.