Earning income through rental properties is exciting, but it also comes with risks. One such risk is the possibility of a tenant causing significant damage to the property, which can be costly to repair and may disrupt the income stream from the investment.
For property owners in Florida, it is important to understand the basics of filing an insurance claim when a tenant damages an investment property.
Your insurance policy
Most standard homeowners’ insurance policies in Florida provide coverage for damages to the building itself and any personal property within it. Keep in mind that Florida’s insurance rates are high compared to other states due to the possibility of hurricanes and excess claims. While insurance covers many damages (such as the weather), not all policies cover tenant-caused damage.
It is essential to review the policy and check for exclusions or limitations regarding tenant-caused damage. Some policies may require an additional rider or endorsement for such coverage. If coverage is available, property owners can then proceed to file a claim.
When filing an insurance claim for tenant-caused damage, it is important to document the damage thoroughly:
- Take photographs or videos of the damaged areas
- Keep records of any communication with the tenant regarding the damage.
Next, report the damage to the insurance company as soon as possible. Provide all necessary documentation and cooperate with the insurance company’s investigation. This might involve allowing an insurance adjuster to inspect the property and assess the damage. The insurance company will then review the claim and decide whether to approve or deny it. If approved, the insurance company will pay for repairs up to the policy’s coverage limit, minus any applicable deductible.
While dealing with tenant-caused damage to an investment property in Florida can be challenging, having a comprehensive insurance policy and understanding how to file a claim can help mitigate the financial impact.