Storm Season Is Headed Our Way!
Time to give one last lingering look at your insurance policy and what it does and doesn’t cover in the event of a storm. Some of us may already be all too familiar as a result of “storm Matthew” last fall and have already made some changes.
If you were lucky enough to not be impacted last go around, NOW is the time to reflect and re-evaluate!
Here are some basics as provided by our friend, Peter Scott, insurance consultant based in Ponte Vedra Beach with Tony Blankenship and Moran Insurance.
We are simply providing this valuable information—we are not insurance brokers and would suggest you discuss any decisions about your coverage with your insurance professional!
Which policy form do you have for rental properties? DP-1 vs DP-3 policy forms.
A Dwelling Fire Form 3 (DP-3) is the better policy to purchase for residential rental properties. The DP-3 dwelling policy form provides what is known as ‘all risk’ or ‘open perils’ coverage, which means that most things are covered unless they are specifically excluded in the language of the policy itself.
DP-3 policies contain all of the same coverages as the DP-1, but they also cover most other causes of loss unless the policy specifically says it doesn’t. Most DP1 policies exclude coverage for water damage (broken pipe, leaking water heater, etc.) falling objects (tree falls on house) and typically for vandalism and malicious mischief (disgruntled tenant or vandalism while home is vacant).
DP-3 policies are a little more expensive than the DP-1. Water damage is the most common claim filed, the extra money is worth the additional coverage.
Seems like a simple tip, but many people do not know how to get in touch with their insurance carrier. Catastrophes are often regional. This means if you property is damaged, destroyed, you have evacuated, or you do not have power there is a chance your insurance agent and office is having the same problems. Know your insurance policy information. Have at least the policy number(s) and insurance company (not agent) contact information for each property and for each type of insurance coverage.
One last thought: don’t forget about flood insurance and know what flood zone your property is located in! This is another aspect to discuss with your insurance professional!
Disclosure: First Place Management Properties, LLC is "not" a real estate brokerage and does not lease or sell properties.
All sales and leasing activities are conducted through FPM Properties, dba. & First Place Management, Inc. both are licensed Florida Real Estate Brokerages.
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