Overview
In the world of real estate investing, every detail matters especially when it comes to protecting your assets. This case study highlights a recent refinance transaction we facilitated for one of our clients, Eyal, involving three rental properties in Florida. What began as a standard refinance with cash out became a great example of why realistic insurance expectations are critical, particularly in hurricane-prone states like Florida.
The Challenge: Insurance Concerns on a Jacksonville Property
During the loan process, Eyal raised concerns over what he believed was an excessive annual insurance quote of $1,800 for the property at xxx, Jacksonville.
While we understand that keeping costs low is important to any investor, here’s what we explained:
“$1,800 is actually a very reasonable premium for a Florida rental property, especially in Jacksonville. After the recent hurricanes, insurance rates have gone up significantly across the state. As an investor myself with multiple properties in Jacksonville, most of my insurance premiums are even higher. In Orlando, rates are often double. In Miami, they can be up to 4x that amount.”
Key Points We Educated the Borrower On:
- Insurance pricing in Florida is materially higher than in other parts of the country due to hurricane risk.
- Even in low-risk states like Ohio, it’s uncommon to see legitimate rental property coverage under $1,000.
- Low-cost insurance often excludes critical protections like:
- Wind and hail damage
- Loss of rental income
- Full roof replacement
- Water damage or sewer backup coverage
In short: cheaper is not always better, especially when dealing with long-term rental investments.
How the Loan Was Resolved
Here’s how we moved forward:
- The policy on Imperial St had lapsed and required a new 4-point inspection.
- The borrower opted to proceed with only two properties while resolving the insurance on the third.
- Our team worked with the lender to split the loan file and continue the refinance on the following:
- Meanwhile, we offered to connect Eyal with Obie, the lender’s preferred insurance partner, to explore more competitive and compliant policy options for Imperial.
The third property is currently being reviewed and may be included in a second loan once insurance is finalized.
Bottom Line
✅ $1,800/year is a great rate for rental insurance in Jacksonville. You’re not overpaying you’re investing in proper protection.
🌪️ In Florida, where storms are a yearly certainty, underinsuring can result in catastrophic losses. Protect your investments the right way.
Are You an Investor with Rentals in Florida?
Whether you’re refinancing, purchasing, or insuring rental properties, Nadlan Capital Group is your partner for efficient, investor-focused solutions.
We work with:
✔️ Over 3,000 lenders
✔️ Multiple insurance providers
✔️ Deals ranging from 1 to 1,000+ units
✔️ Investors in all 50 states
Let’s Talk
📲 Contact us today to start your refinance or review your insurance coverage.
Nadlan Capital Group – The Trusted Choice for Real Estate Investors Nationwide.