Is this a good rate for landlord insurance in Florida?

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We have gained access to a new product for us in Florida for landlords with 5 or more rental properties; commercial, residential, condo, vacant or occupied. I have written a few lately and we were thinking about putting together a marketing strategy to market the product to property managers in Florida. We were opened to the idea of writing in Florida by a client of ours that had properties in Detroit, MI and they were so happy because we offered theft and a very competitive rate that they asked us to look at some properties in Florida. They felt our coverage was outstanding and the pricing was good so we won the business. We got excited and now we want to know if is this a good fit for the Florida market.

We are based out of California so I was looking for some feedback on the competitiveness of the product in Florida and the marketability to include ideas on how to reach those property managers that could benefit from this type of policy. Any feedback would be greatly appreciated.

First I want to list the coverages. We are new to the Florida area but I know wind coverage is a big deal. We also know property coverage is hard to come by and even harder for landlords, especially condo owners.

So here are the coverage highlights.

Vacant and Occupied: Residential or Commercial Properties

Inadvertent Errors and Omissions: Reporting coverage is provided.

“All Risk”Type Coverage: On all Properties including Hurricane, Windstorm, Flood and Earthquake. Note: See policy wording for certain policy exclusions and limitations. (California Earthquake Excluded.)

Builders Risk - Course of Construction Coverage: (only for new construction that is incomplete) is available by optional endorsement and additional rate.

Freeze Coverage: endorsement is available by optional endorsement and additional rateRecommended for properties located in states prone to freeze damage.

Commercial Contents Coverage: is available (with stated exclusions)and must be reported separately.

Loss of Rents Coverage: is available and must be reported separately. (6 months must be reported)

Replacement Cost Value Form Policy: adjusts losses at replacement cost less deductible. Eighty percent (80%) of replacement cost value reporting is required. Losses occurring on down payments (less than 80%) property are adjusted with depreciation on an actual cash value basis.

Underwritten by: A.M. Best (A+), S&P (A+) carriers.

The policy is a monthly billed policy so there are no huge down payments and cash flow is maintained more easily. The nice thing about the policy is that coverages can be a la down payments per property but it is still one policy, one liability limit(min $1,000,000/$2,000,000), and one bill. The other nice thing about the policy is properties can be added and subtracted at will. The next monthly bill reflects the changes. No down payments, multiple bills, and different effective dates to keep track of. The policy renews annually, the properties are billed monthly.

Here is an example of a recent policy we wrote. This client wanted wind coverage in addition to the all peril coverage. These are monthly rates:


DetroitMI48223    $21,000.00                $16.08                      $4.34

DetroitMI48228    $37,000.00                $28.31                     $7.63

DetroitMI48224    $45,000.00                $34.45                       $9.29

DetroitMI48206    $50,000.00               $38.26                       $10.32

DetroitMI48212    $56,000.00                $42.86                      $11.56

DetroitMI48203    $20,000.00                $15.31                       $4.13

DetroitMI48219    $25,000.00                $19.14                      $5.16

DetroitMI48223    $25,000.00                $19.14                       $5.16

Beaumnt TX77708$86,000.00                $124.99                     $17.75

VENICEFL34293    $95,000.00                 $154.42                     $19.61

HOLIDAY FL34691$150,000.00               $243.81                     $30.96

FG SPRGS FL32693$50,000.00                 $81.27                       $10.32

JKSNVLE FL32246$112,000.00                $182.04                     $23.11


Number of Properties: 13
Totals:                     $753,000.00                $1,000.08                  $159.34

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