We are appreciative to Jorge for sharing this information with us. If you have any questions about investment property insurance in south Florida, or anything pertaining to Fort Lauderdale property management, please contact us at Florida Property Management Services.
LANDLORD INSURANCE FAQ FOR REAL ESTATE INVESTORS IN FORT LAUDERDALE, FL
Appfolio Websites • October 6, 2016
There are several types of investment property insurance that are important to south Florida real estate investors, and we’ve asked an insurance expert to join us. Jorge Acosta, with USI Insurance, is going to explain what types of landlord insurance shouldn’t be overlooked when you’re managing the risks associated with your rental property.
Property Insurance
Quite a few insurance coverages are a necessity for investors and landlords. Property insurance is number one, and it covers things like fire or theft. You also need tornado and wind coverage on your properties. Sometimes, owners don’t think about including that coverage because the house may be paid off or the bank doesn’t require it, but it’s necessary.
Liability Insurance
Liability insurance is also very important. Take a look at your policy and make sure you’re adequately covered. Tenants tend to have people come in and out of the property, as everybody does, and if someone slips and falls at a party, they can sue you. Be protected with liability insurance so the policy covers you for those types of damages.
Loss of Use Insurance
One of the most important policies to keep in mind is loss of use and loss of income. Whenever a storm hits or a fire occurs and the tenants won’t be able to live in your property, you won’t have rental income. Loss of use insurance will ensure you don’t lose that income, whether it takes three weeks or six months to get your tenants back in place.
Flood Insurance
Flood insurance is extremely important and not too expensive, even in a flood area. People forget that 30 percent of the time, floods occur in non-flood areas. So make sure part of your risk management plan is to include flood insurance.
Those four types of insurance are the most important policies a real estate investor can buy.
Deductibles and Co-Insurance
Choosing the right deductible amount is strictly an economic question for the property owner. The higher the deductible, the lower the cost of your premium. It’s important to get a good deductible that you can cover. You don’t want to pay 10 percent if something happens, you want to pay 2 or 3 percent. Sometimes we hear about people wanting a $50,000 deductible, but at that point, you’re basically self-insuring. I recommend $2,500 or $5,000 for your deductible amount. It depends on your risk tolerance and what’s best for you and your properties.
Choosing Your Insurance Company
There are hundreds, even thousands of insurance companies out there. Some of them will offer very low prices, however you want to think about whether that means you will have to fight to get your claims paid. Typically, I won’t sell or recommend any company that isn’t A-rated by A.M. Best. Financially, they have to be sound, they need the right amount of reserves to pay claims, and they need a strategy if there’s a catastrophe.
Comprehensive Risk Management
Those coverages we talked about are pretty general and most owners will know to have them. But to have a comprehensive risk management plan and make sure you’re covered correctly, look at two other things. One is cyber liability. Owners have data on all their tenants and even the people who applied but didn’t get approved. So a breach can be costly to you. If someone steals the identity of a tenant or takes money out of a bank account, you could be in trouble. Get cyber liability, which will protect you. Another thing to consider is an environmental policy. Most property policies don’t cover this, and you need separate coverage. An environmental policy protects you against things such as oil that a tenant might leak. If your tenant throws oil away in a dumpster and that leaks into the water supply, it’s going to be a big issue. This insurance will cover liability claims and environmental claims.
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Welcome to this month’s Investor Newsletter. With market conditions varying widely from one metro to the next, staying informed has never been more important. This edition dives into the shift away from a one-size-fits-all housing market, highlights the hidden value of assumable mortgages, and covers the SFR headlines worth watching this month. Let’s dive in! The Death of the “National Housing Market”: Why Local Knowledge Is the New Investor Edge For years, real estate investors could rely on a familiar narrative: the housing market is hot or the market is cooling. But in 2026, that headline is becoming less and less applicable as there is no longer just one housing market. Instead, there are thousands of local markets moving at different speeds. At the national level, housing appears more balanced than it has in years. According to Realtor.com’s Housing Market Report , April contract signings rose 4.5% year over year, while new listings reached their highest level since 2022. On paper, that suggests momentum is returning, but beneath the surface, the story can change by region, metro, and even ZIP code. Realtor.com found that performance across the top 50 U.S. metros varies widely, buyer activity is picking up in some areas, while others remain slow. In fact, many of the strongest-performing housing markets in early 2026 have been concentrated in the Midwest rather than the typically strongest Sun Belt region. A recent Fortune analysis noted that affordability and home pricing are helping Midwest markets outperform many southern metros in which are now facing softer demand and rising inventory. Rental performance is becoming just as localized too. The latest SFR Index found rent growth slowing significantly compared to prior years, with standalone SFR rents increasing just 0.8% year over year nationally in February. Meanwhile, some markets continue to stabilize while others face more pressure from new supply and affordability challenges. Additionally, according to a Yardi Matrix report , areas with more new construction, particularly in parts of the Sun Belt, are seeing weaker rent growth. Local market changes often show up first in property management data. Leasing activity, renewal rates, concessions, and tenant demand tend to change at the neighborhood level long before national housing reports reflect them. One area may remain highly competitive while a nearby neighborhood sees slower leasing activity. As an investor, it may be time to look beyond national headlines and even citywide trends when evaluating markets. You may want to look at where homes are leasing fastest and which neighborhoods are seeing new supply. Competitive edge may not come from choosing the right city, but from understanding the right block. As your property management company, we are here to help, so please reach out if you have any questions about your market. Did You Know: Assumable Mortgages Everything You Need to Know in 60 Seconds! What exactly is an assumable mortgage? Instead of getting a brand-new loan, the buyer takes over (or “assumes”) the seller’s existing mortgage, including the current interest rate, remaining balance, and loan terms. Not all loans qualify, but many FHA, VA, and USDA loans do, while most conventional loans do not. Who can use this? Real estate investors, homebuyers, and sellers can all benefit. For investors, assumable loans can be attractive when today’s interest rates are much higher than the seller’s existing loan rate. On the other side, it can also be used as a major selling point. Where can investors find this? Assumable mortgages can be found nationwide, but availability depends on the financing already attached to the property. Most conventional bank loans have a "due-on-sale" clause, which means they cannot be assumed. When is the best time to use this? These loans become especially valuable when current mortgage rates are much higher than rates from previous years. Assuming a mortgage at 3% instead of getting a new loan at 7% could dramatically reduce monthly payments for investors. Why does this matter? As a buyer, an assumable mortgage can help improve cash flow, lower financing costs, and make a property more attractive to future buyers. As a seller, it acts as a massive marketing tool. Offering a built-in low interest rate allows your property to stand out. Investor Takeaway: A low-rate assumable mortgage can be a valuable opportunity when buying AND a strong selling feature when it’s time to exit an investment. SFR Trending Headlines Stay Up to Date on the Hottest SFR News & Stories Are Single-Family Rentals Climbing While Apartments Slump? The Summer Pause : Why Zillow Says the Housing Recovery Just Hit a Wall Lizzo Offloads Her Beverly Hills Compound at a Massive $4M Discount Wall Street Is Betting $15 Billion on a Brand-New Wave of Housing Supply Why Ellen DeGeneres Just Listed Her $30M Eco-Farmhouse and Left for the UK Rate Update: We've Partnered with LendingOne to Bring You The Best DSCR Rates & Terms! DSCR Loan Advantages: Rates Often Lower Than Banks No Personal Income Requirement No Tax Returns Needed Not Reported on Credit Faster Closing Times Specialized Loans for Investors Only! To Inquire about Single Family Investor loans by email us at office@properties.rent Until Next Month! The Florida Property Management Services Team
Florida HB 803 is a new law that exempts certain residential construction work valued under $7,500 from building permit requirements, effective July 1, 2026. This law aims to simplify the permitting process and reduce delays for small home improvement projects. Resources: Florida House Adam & Reese Attorneys Overview of Florida HB 803 Florida HB 803 is a new law that significantly changes the building permit requirements for residential construction in Florida. It is set to take effect on July 1, 2026. Key Provisions Permit Exemption: Residential construction work valued under $7,500 is exempt from building permit requirements. Local Government Limitations: Local officials are restricted from inspecting exempted work. Temporary Structures: The law allows for certain temporary hurricane or flood protection walls to be built without a permit. Additional Changes Private Provider Authority: Expands the role of private providers in the permitting process, reducing local oversight. Homeowners' Associations: Prohibits HOAs from requiring permits for architectural reviews of proposed improvements. Permit Review Deadlines: Introduces mandatory deadlines for permit reviews, aiming to speed up the process. Important Considerations Written Request: Homeowners or contractors must submit a written request for exemption to the local enforcement agency. Prohibition on Project Splitting: Projects cannot be divided into smaller components to evade the $7,500 threshold. Exclusions: The exemption does not apply to electrical, plumbing, mechanical, gas, or structural work. This law aims to streamline the permitting process, reduce costs, and encourage home improvement projects across Florida. Very Important to remember: Under Florida HB 803, residential construction work valued under $7,500 is exempt from building permits, except for electrical, plumbing, mechanical, gas, or structural work, which still require permits regardless of cost. The exemption also does not apply to properties in flood hazard areas
