All Forum Posts by: Jared Townsend

@Jon S Strick The best vacation rental properties in Orlando (best rent rate and lowest vacancy) are in the communities designed for vacation rental and provide resort-like amenities to your renters. Also make sure you find some way to differentiate the property - otherwise you're just another hotel room and the lowest price always wins. 

You will likely get a better rate working with one broker, multiple carriers since each carrier will have more favorable rates based on their preferred risk profile. We do however see some investors opt for a single policy for all of their properties. That is by far the easiest to manage and if the properties are similar in size/age/location/etc. the rate may not be worse than writing them individually. 

@Lenny Markus

Are you looking for a single policy for all of the properties? Or just to consolidate down to one broker to carry all of the policies?

I have installed a few central ACs in my rentals to replace window units. In my experience, the cost ranges from $3000-5000 depending on the size of the unit and the distance they have to run ductwork. 

The carriers have run the statistics and found the houses with window units are significantly more likely to report a claim and/or the cost to repair is inflated when compared to homes with central AC. As to what causes the increased claim activity your guess is as good as mine. My first thought is it having to do with lowering humidity throughout the entire house so there are fewer mold claims but that is just my guess. 

@Glenn P.

The vacation rental use and piers are definitely insurable. The window units are the tough part of the equation. Are they supplemental to a central system? Is there a secondary heat source? Odds are you can get it insured somewhere - but it would be expensive. A better option would be to install a central AC and you will have many more (ie. affordable) options available to you. 

@Tyler Harrel

I assume you are investing locally in the S FL market so rates are going to be substantially higher than North or Central FL. Concrete block will keep your costs lower than frame. If the property is more than 30 years old you will need a Four Point Inspection (verifies the roof, AC, electrical and plumbing are all in working order). A Wind Loss Mitigation Report (WLM) will also help reduce your cost assuming the property is older than 2002. 

Outside of those general guidelines it is impossible to provide a useful estimate. Its like asking how much does someone pay for a car. Some people buy Bentleys and others buy scooters - wildly different costs for sure! Your best bet is to follow the guidelines and build a strong relationship with an insurance agent who can provide quotes for properties you are considering purchasing. 

Best of luck to you! 

@Cynthia B. It is difficult to get the sinkhole endorsement because of a few bad actors more than 10 years ago that helped clients file fraudulent claims. When the legislature wouldn't do anything about the carriers had no option but to remove the coverage. It is unfortunate and does not leave us with many options.

We do have a few carriers that offer sinkhole coverage without an inspection in certain areas. Your best bet is to find a quality insurance agent that represents a large number of carriers. That is your best bet to get your requested coverage - though sometimes it just isn't always possible. 

On some newer properties you can also get a 1% deductible or even a $500 deductible (usually in Central FL). Your best bet is to work with an independent agent that knows the area and has access to FL specific carriers. 

@Frank C. You may be able to get a commercial liability policy with $1 mil or $2 mil limits that would eliminate the need for the umbrella on that property. If USAA still gives you trouble you could quit claim it to an LLC.

@Dimitri Paspalaris You should be able to get an umbrella policy without owning a primary residence. You would just need a renters insurance (HO4) policy in place.