Property Investors: Do You Have the Right Insurance?

Property Investors

Photo credit: Image by Nattanan Kanchanaprat from Pixabay

As a property investor, your insurance needs are more complex than the average homeowner. Some insurance agencies are unfamiliar with the requirements of investment properties, particularly ones purchased in the name of an entity such as a land trust, LLC, or a corporation. At Lakewood Financial, we have a lot of experience working with property investors and others with complex real estate insurance needs.

 

Whether you intend to buy an investment property and flip it, or install a tenant, we represent many companies who are happy to insure your investment property. These companies offer a variety of policies tailored to the needs of property investors, including:

 

DP3 Dwelling Fire—Dwelling Fire policies provide coverage for residential buildings that are not owner occupied, but are usually rented to others. The most popular version of this policy is called a DP3. It provides coverage for the building’s structure from all perils except those specifically excluded in the policy, as well as personal liability and loss of use. It is also a replacement cost policy, and we consider it one of the best non-owner occupied policies on the market.

 

Builder’s Risk—This policy provides coverage for damage to the insured structure and liability coverage during a renovation period. We can write these policies in terms of two, three, four, five, six, or 12 months. Renovations need to improve the property by 50 percent of its value to qualify for a Builder’s Risk policy, so if your property renovations are only cosmetic, you may insure your property with a Vacant Dwelling policy (see below).

 

Vacant Dwelling—In addition to being appropriate for a property that doesn’t qualify for a Builder’s Risk policy, Vacant Dwelling also provides coverage for property investors who own rental property and are between tenants or are trying to sell a property no one lives in.

 

So whether you’re a property investor who buys and flips homes or one who rents to tenants, we’ve got you covered, even during the renovation process. Please call Lakewood Financial at 941-747-4600 or email us if you’d like to know more about how we can help you protect your investments. We’ve been serving Lakewood Ranch, Bradenton/Sarasota, and surrounding areas since 2003.

“When thunder roars, go indoors!”—Lightning Safety for You and Your Family

Even though summer doesn’t officially start until June 21, we’re already experiencing increased thunderstorm activity in Sarasota, Bradenton, and nearby areas. Florida is the lightning capital of the United States, with more than 2,000 lightning injuries in the past 50 years. While the odds of being struck by lightning are only 1 in 500,000, you’re at increased risk if you often work or play outdoors—and with summer activities soon to be in full swing, that’s most of us!

Since June is Lightning Safety Month, here are a few lightning safety reminders from your neighbors at Lakewood Financial.

Check the forecast

If you plan to spend a lot of time outside—going out on a boat, going dirt biking, hiking, or canoeing, for example, be sure to check the weather forecast. If thunderstorms are predicted, adjust your plans. And even if the forecast is favorable, be sure to keep an eye on the weather once you’re outside. Know where you can go for safety if a storm blows up. Your best options are an enclosed shelter not made of concrete (the metal wires and bars in concrete walls and flooring can conduct lightning), or a metal-topped vehicle.

“If you hear thunder, lightning is close enough to strike you,” according to the National Weather Service. Another rule of thumb: if you see lightning, count to 30. If you hear thunder before you get to 30, go inside. Don’t go back outside until 30 minutes after you hear the last thunderclap. Lightning can strike before or after rainfall, and as far away from rain as 10 miles.

If you’re outside

During storms with lightning, if you’re outside, you’re at risk. Doing the following may make you slightly safer:

Avoid open areas, isolated trees, towers, metal fences, or bodies of water—though these things don’t attract electricity, they do conduct it. If you can’t get inside a metal-topped vehicle or fully enclosed building, get as low to the ground as you can, with as little of your body as possible touching the ground.  Look for a low spot such as a ditch or depression.

What if you’re inside?

You should still be cautious even if you’re inside when lightning is present—one-third of lightning-strike injuries occur inside. During thunderstorms, avoid using water (no showers, baths, hand washing, or doing dishes), electronics, or a corded telephone. These things all conduct electricity and you could be injured if lightning strikes nearby while you’re touching them. It’s safe to use a portable or cell phone. Also stay off porches, balconies, lanais, and out of open garages.

Also remember your pets during storms—a doghouse or screened porch is not a safe place for your pet. Bring him or her indoors until the storm passes.

If someone is struck by lightning, call 9-1-1 and begin CPR if you have training. Strike victims often need immediate first aid and touching them will not give you a shock. Only 10 percent of lightning strike victims die, but many of the rest live with serious aftereffects such as severe pain, neurological disabilities, or depression.

If lightning hits your home, most standard homeowners insurance policies cover structural damage and damage to personal property caused by lightning. If your car is hit by lightning, if you carry comprehensive insurance, it should be covered, less your deductible. Be sure to report the lightning strike to your insurance company or to your Lakewood Financial agent as soon as possible.

Please feel free to call us at 941-747-4600 or contact us online if you have any questions about your insurance needs and coverage. And stay safe this summer!