Owning investment property in Florida is a smart way to earn consistent rental income and long term returns. Every real estate investor in Florida understands the unique risks here, and the best way to manage those risks is to prepare for them.
There are multiple ways to protect your investment property. Good insurance is the start.
Landlord insurance is essential in a state where hurricanes, tropical storms, and flooding are part of the yearly forecast. The right protection is an absolute necessity.
But navigating Florida’s increasingly complicated and expensive insurance market can feel overwhelming, especially as insurers are adapting to the flurry of claims coming in following active hurricane seasons.
The good news is that the insurance market is stabilizing. Now is the time to review your landlord policy and make some updates to it if you notice any gaps in coverage. Property values are always changing, and you want to make sure you have all the coverage you need.
Let’s break down why landlord insurance is so important, what it covers, and why you need to be extra vigilant if you’re investing in Florida real estate.
Landlord Insurance as a First Line of Defense in Owning Florida Rental Properties
Landlord insurance is sometimes called rental property insurance and while it’s similar to a homeowner’s policy, there are some nuances. This is a specialized policy designed for property owners who rent out one or more homes, apartments, or condos.
Landlord insurance typically includes:
- Property coverage for the structure itself (against risks like fire, lightning, wind, etc.)
- Liability protection in case someone is injured on your property
- Loss of rental income if the property becomes uninhabitable due to a covered event
You’ll find there are also optional coverage add-ons for things like vandalism, building code upgrades, or flood insurance. These are worth discussing with your agent because in Florida, those “optional” coverages often aren’t so optional anymore. The risks are real.
Why Landlord Insurance Is Crucial in Florida
Every rental property owner needs to have a good insurance property to protect their investment and their own financial stability. In Florida, the need for that insurance is even more pronounced. Here’s why.
- Hurricanes and Tropical Storms
It should not surprise anyone that Florida leads the nation in hurricane landfalls. According to the National Hurricane Center, over 120 hurricanes have hit Florida since records began in the 1800s. And with warmer ocean temperatures fueling more intense storms, we do not expect this trend to slow down anytime soon.
While most policies cover wind damage and the type of flood damage that occurs when a pipe bursts inside the home, flood damage from storms typically requires separate insurance. This is worth having because rental property owners often find themselves underinsured or entirely exposed when this sort of disaster strikes.
Landlord insurance policies written for Florida properties can include windstorm riders, loss of use clauses, and in some cases, even flood coverage if paired with an NFIP (National Flood Insurance Program) or private flood insurance policy. Look into all of your options, because without this, one big storm can wipe out years of investment in an instant.
- The Rising Cost and Complexity of Florida Insurance
Recent reports from Florida’s governor say that premiums should be reduced by an average of 5% in 2025. That’s good news, given the rising expense over the last few years. Getting and maintaining landlord insurance in Florida became increasingly expensive and complicated. Insurance companies began to pull out of the state, citing high costs of claims and litigation—especially from hurricanes, roof scams, and fraudulent repairs. Those that remain often charge significantly higher premiums than the national average.
With a crackdown on some of the scams that were causing financial fallout, the insurance market is stabilizing in the state, and to the great benefit of real estate investors here. According to the Insurance Information Institute, Florida homeowners and landlords pay nearly three times the national average in insurance premiums, and that’s simply a reflection of risk. Florida is mostly a paradise, with warm winters and beautiful scenery. During hurricane season, all of us are holding our collective breath.
The complexity and costs of the statewide insurance crisis has led to:
- Fewer providers to choose from
- Higher deductibles, especially for named storms
- Stricter underwriting requirements (e.g., roof age, building codes, elevation)
- Frequent policy cancellations or non-renewals
Still, the coverage is worth it, and we’re experiencing a reset in the market, which is providing more access and affordability to rental property owners who need the right coverage.
- Tenant Issues and Liability Risks
Even if you dodge the hurricanes and storms, being a landlord in Florida comes with liability risks. A tenant could trip on a broken step, a guest could get injured at your pool, or someone could sue for mold exposure.
Landlord insurance helps cover legal fees, medical payments, and court judgments that could otherwise come out of your pocket. Florida is a fairly landlord-friendly state, but litigation is not uncommon, so having robust liability coverage is crucial.
If you’re renting short-term properties, you’ll want to make sure your policy allows for this type of occupancy, or else your claim could be denied.
What to Look for in a Florida Landlord Insurance Policy
Not all landlord insurance policies are created equal—especially in Florida. Here’s what to prioritize when shopping for coverage:
- Windstorm and Hurricane Coverage
You’ll want to check and double-check your policy for this coverage. Not all insurance providers include windstorm or hurricane coverage by default in high-risk counties. Some property owners are finding their best policy is through Citizens Property Insurance Corporation (Florida’s insurer of last resort), but you’ll want to explore private carriers, too.
- Flood Insurance
Standard landlord insurance does not cover flood damage. You’ll need to purchase a separate flood insurance policy—either through the NFIP or a private provider. With rising sea levels and increasingly unpredictable rainfall patterns, this is a must.
- Loss of Rental Income
If your rental unit becomes uninhabitable due to a storm, fire, or other covered event, loss of income coverage will reimburse you for lost rent during repairs. This can be a financial lifesaver if your mortgage still needs paying.
- Ordinance or Law Coverage
Florida has strict building codes, and after a storm, you may be required to bring your property up to code before repairs are approved. This coverage helps pay for those extra costs.
- Vandalism and Theft
Especially if your property sits vacant for a long period of time, vandalism or theft can be a risk. Make sure this is included—or available as an add-on.
Tips for Managing Florida Landlord Insurance
Local knowledge matters. A Florida-based agent will be familiar with regional risks, local building codes, and available providers that still write policies in your area. Large, national companies might be able to provide you the best insurance, but work closely with a local agent.
Make sure you’re insuring a well-maintained rental home. Insurance companies often inspect properties before issuing or renewing a policy. Make sure your roof, plumbing, electrical, and HVAC systems are in good condition. A well-maintained property is not only safer but also more insurable.
Lately, we have been big fans of impact-resistant windows, storm shutters, and elevated foundations. These things not only protect your investment, they can sometimes earn you discounts on insurance premiums. Some counties also offer grants or tax breaks for wind mitigation improvements.
Don’t under-insure your investment. While it can be tempting to go with the lowest premium, make sure your coverage limits actually reflect the true replacement cost of the property—not just its market value.
Owning investment property in Florida can be rewarding, but it’s not without its challenges. From wild weather to a volatile insurance market, landlords in the Sunshine State must be prepared for the unexpected. Make sure you are protecting your property not only with your own insurance, but with a requirement that your tenants obtain renter’s insurance, especially if you’re renting out a long-term home. This will protect their own possessions and provide them with liability protection.
Landlord insurance is more than a box to check off when you decide to invest in real estate. As a landlord, you need this solid foundation as part of your risk management strategy. Good insurance protects your investment, your income, and your peace of mind.
Insurance is expensive here. But it’s essential. If you’re caught uninsured or underinsured during a hurricane, after an accident at your property, or following a fire, there’s going to be a lot of financial devastation and a lot of remorse that you didn’t take those insurance needs more seriously.
We’re offering this advice as professional property managers. We are not insurance agents. But we can introduce you to a good agent if you need a referral. Let’s talk about how best to protect your investment property. Contact us at Realty Group of Southwest Florida. We’re managing vacation homes and long-term leases in cities like Naples, Fort Myers, Bonita Springs, Estero, and Cape Coral.
