Chris Chase
Licensed Florida insurance broker · FL License #G193830 · NPN 21407586
Last reviewed October 2026
The short version
- A home you rent out is insured on a dwelling policy, usually called a DP-3, not a regular homeowners policy.
- Liability, contents and theft coverage are often optional on a landlord policy, so check for them.
- Older rentals often get limited water coverage and a roof paid at depreciated value.
- Landlord policies in the area have averaged about $3,620 a year over the past 36 months. Every Florida home policy also carries a separate hurricane deductible, usually 2% to 10% of the dwelling limit, which you pay first on a hurricane claim.
If you own a house that someone else lives in, you need a different kind of policy than the one on your own home. It’s one of the most common gaps I find: a home that became a rental years ago and is still on the original homeowners policy.
Landlord policies also work differently in ways that aren’t obvious from the first page. Read this before you buy one, renew one or turn your home into a rental.
In this article
Why a rental needs its own type of policy
A homeowners policy, the HO-3, is built for a home the owner lives in. It bundles the house, your belongings, your living expenses if you have to move out, and your personal liability.
When a tenant lives there instead, the risk is different. You aren’t there to notice a slow leak. Your furniture isn’t in the house. And your exposure is as a property owner, not a resident. The policy built for that’s a dwelling fire policy. The broadest common version is the DP-3.
If you move out and rent your home without changing the policy, you risk a claim being questioned because the home isn’t being used the way the policy says. Tell your agent before the tenant moves in.
What a DP-3 covers
- The dwelling. The house itself, at an amount based on the cost to rebuild.
- Other structures. Sheds, fences, detached garages.
- Fair rental value. Lost rent while the home can’t be lived in after a covered loss.
- Optional coverages. Liability, medical payments, your contents and theft are frequently add-ons instead of built in.
That last point is the one that catches people.
What’s often not automatic
Who can own the property
This is one place landlord policies are more flexible than homeowners policies. Rentals are commonly owned by an LLC, a corporation, a trust or a partnership, and dwelling policies are generally set up to handle that. The details differ by company:
- Some will include liability for an LLC or trust.
- Some will insure the building for an entity but exclude personal liability and offer premises liability instead.
- Some want an individual listed along with the entity.
- Some limit how many rental properties one owner can insure with them.
The name on the policy should match the name on the deed. If you move a rental into an LLC, tell me so the policy can be updated.
Water damage rules start earlier on rentals
On a homeowners policy, water damage limits tend to show up when a home reaches around 40 years old. On landlord policies, I commonly see them start at 30 years. Depending on the company, an older rental may get:
- Water damage coverage limited to a set amount, such as $10,000.
- Water damage excluded, with the option to buy back a limited amount.
- Full water coverage only after an inspection shows the plumbing has been updated.
Water is the most common serious loss in a rental, because a leak can run for days before anyone tells the owner. If you own an older rental, find out exactly what your water damage limit is. Don’t assume.
Roofs and older homes may be paid at depreciated value
Two things work differently on many landlord policies.
First, the roof. It’s common for a landlord policy to pay roof claims on a schedule or at actual cash value, based on the age and material of the roof. A 15-year-old shingle roof would be paid at a fraction of the cost of a new one.
Second, the whole house. Some companies settle claims on older rental homes, often those 30 years and older, at actual cash value across the board. That means depreciation is taken off the entire claim, not just the roof.
Ask this question directly on every quote: “Is the dwelling paid at replacement cost or actual cash value, and what about the roof?” Two policies with the same Coverage A amount can pay very different amounts after a loss.
Short-term and vacation rentals
Renting by the night or the week is a different risk from a 12-month lease, and companies are far apart on it. Among the rules I see:
- Some won’t insure nightly rentals at all.
- Some accept short-term rentals with a minimum stay, a surcharge or a special endorsement.
- Some require a rental management company for stays under a month.
- Some limit how many short rentals you can have in a year.
- Renting by the room and home-sharing are often not accepted.
If you list a property on a vacation rental site, say so on the application. A policy written for a long-term tenant may not respond to a claim that happens during a weekend booking.
Common questions
Can I keep my homeowners policy if I rent my house out?
No. A homeowners policy is written for a home the owner lives in. A rental should be on a landlord policy. Let your agent know before the tenant moves in.
Does my landlord policy cover my tenant’s belongings?
No. Tenants need their own renters insurance for their things and their own liability.
Can my LLC be the named insured?
In many cases, yes. Companies handle liability for entity-owned rentals differently, so I check that before I quote.
Coverage, eligibility and pricing vary by company and by property. Averages aren’t a quote.
Official sources
- Florida Department of Financial Services: homeowners insurance overview
- Florida Statute 627.0629: windstorm mitigation discounts
- FloodSmart (National Flood Insurance Program): buying a policy
Keep reading
- Seasonal Homes, Rentals, LLCs, and Trusts
- Water Damage, Plumbing, and Older Homes
- Florida Home Insurance and Roof Age
- Four-Point Inspections and Home Insurance
Related coverage: landlord insurance, condo insurance and homeowners insurance.
Ready to see what’s out there?
Send me a quote request or give me a call. I’ll shop it and explain what I find.