Tampa Bay’s Best Property Management company and Insurance agent talk about homeowners insurance on Rental properties

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Andrew Duncan, #1 Tampa Bay Realtor has Paul Arrington from Arrico Realty & Property Management and Richard Vasquez from Artisan Insurance Group on The Duncan Duo Real Estate Show to talk about homeowner insurance on rental properties.

Andrew starts off the show by saying that people who have rental properties don't realize the insurance ramifications of having their policy changed. He says they often come across consumers who don't want to sell yet because they can't get equity for their home so they decide to rent it out for a year. He then refers them to Paul to have it rented out.

It is important to understand the insurance ramifications of that side. It is different when you have a rental property vs a home you're occupying.

Richard from Artisan Insurance Group discusses that things greatly change in the eyes of the insurance company once a home is rented out. Some people think that their insurance rate is going to go up so they decide not to let their insurance officer know about their plans to rent it out. A lot of times the insurance rate does not go up. They have to change their insurance policy because it's being rented out but now they don't have to insure all the belongings inside the house. Richard stresses that it will be a different policy but will not necessarily mean more money.

Paul from Arrico Realty & Property Management says that part of the process when they deal with a client is advising them to change their insurance policy. He shares that certain insurance companies, once they tell them that it's going to be a rental property and is vacant, they can be dropped. A lot of insurance companies don't want the liability. He then advises the client to get a signed lease because the insurance company would ask for it. He tells them to make sure to change their home owners insurance policy to include public liability.

Andrew explains that it's just a matter of making a smart business move. When you go from being a home owner to a landlord, you go from being a normal person to a business owner. You will have business risks. That property you own is now considered it's own business. As someone who grows a rental portfolio, you will be able so see different insurance coverage, different packages, umbrella policies, etc.

For more Tampa Bay Real Estate news and advice, tune in to The Duncan Duo Real Estate Show on 970 WFLA - Tampa Bay every Sundays at 10 am.

*The Duncan Duo and RE/MAX Dynamic has moved. As of 10/11/2014, our new address is 6320 S Dale Mabry Hwy, Tampa, FL 33611