1639 Cape Coral Pkwy E. Suite 203 Cape Coral, FL


Phone: (239)549-5420
Fax: (239)549-7905
Email: dave@integratedinsfl.com




Landlord Protection


Rental property is a great investment, especially if you protect your assets with excellent coverage. Make sure that you and your property are covered when choosing a landlord protection insurance policy. Nowadays, the dwelling fire policy still has a place in property insurance especially for landlords who don’t have any interest in insuring the “contents” of a particular dwelling but want insurance that’s tailored specifically to protect rental properties. However, most insurers will offer a small amount of coverage for “contents” on this type of policy. Often, landlords may require a few thousand dollars to cover appliances they may furnish to a renter.


What Does a Dwelling Fire Policy Cover

We now understand that the dwelling fire policy covers the “structure,” but property insurance is a little more complicated than that. When considering any insurance policy, you must look at the Loss settlement method, the perils insured against, and the limits of coverage.

Loss Settlement Method

There are two main loss settlement methods your insurer will offer you.

You may either purchase a “replacement cost” or an “actual cash” value policy for your dwelling.

You will likely be required to purchase a replacement cost policy if you have a mortgage, as this ensures the bank (who really owns your property) that their asset will be rebuilt in the event of a total loss.

Actual cash value loss settlement policies are typically associated with lower value properties, those in less-than-good condition and certainly those properties with no mortgage.

Perils Insured Against

You may also choose the perils against for which you are insured. There are two basic types of coverage form with regard to what types of damage you are insured against. These are referred to as the “named perils” and “special perils.”

Limits of Coverage

The unfortunate reality of property coverage limits is that most people are underinsured as far as their property limits go. This is caused by people wanting cheaper insurance premiums. Of course, the less coverage you purchase, the cheaper the overall premium. This is not necessarily a good thing.

Too many agents are willing to sell you lower coverage amounts to “win” a sale with a lower premium. However, you may lose out big-time in the event of a total loss if the property is underinsured.

Not only may you not have enough money to rebuild your property, but you may incur a coinsurance penalty if you are “too” underinsured.


The cost to rebuild your home from scratch (after paying to have the previous debris removed) can differ substantially from your home’s current market value.

Why is my home’s replacement cost so high?

To Sum It Up.

Make sure to consider the cost of “proper” insurance as part of your overall evaluation of any real estate investment. Too many landlords forget to factor in the cost of insurance when they are making a decision to purchase a particular property.

This often leads to cutting corners on the insurance side of the equation. Finding a property and getting qualified for a loan are just the beginning. The right insurance will protect you for the life of your investment. An “uncovered” property loss that occurs well into the future can ruin the entire investment.

Get an insurance quote and speak to one of our agents to get quotes. You may get better coverage at a lower premium if you take the time to get it right. Contact Integrated Insurance Services today.