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Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.The cost of landlord insurance can be a monetary issue for many property owners. Actually, numerous individuals might think that they are overpaying for even a basic landlord insurance policy. But if you are a rental property investor with only basic coverage, you need to acquire additional insurance to protect yourself and your property from tragedy.

In Greenwood, it is imperative for property owners to have insurance that covers more than just their rental house. Having the right insurance for your situation, including comprehensive coverage for lost rent, full obligation, and unexpected special assessments, can provide you with the peace of mind that your investment is safe.

Incidents may require significant repairs

Most investors are conscious of the value of getting insurance coverage to protect their investment in the event of an enormous loss. Storm damage, fire, and other events can necessitate extensive repairs and make the property uninhabitable. With a basic landlord insurance policy, there is no way to safeguard yourself from the loss of rent. This is where fair rental income protection takes effect.

Protect your cash flow

Sometimes also called fair rental value coverage, this kind of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable due to a covered claim. This form of coverage is not included in a significant number of landlord insurance policies, but some do provide it. If yours does not, and lost rent is a concern for you, it is critical to investigate adding fair rental income protection to your base policy. The financial protection that this additional coverage offers can ensure that your income is protected even in unexpected events.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and particular sorts of liability. Plenty of landlord insurance policies provide coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. Nevertheless, for certain property investors, additional coverage is necessary to deal with other potential liabilities. In these situations, additional liability coverage may be the appropriate course of action. For instance, if a tenant experiences a break-in while renting one of your properties or engages in an unlawful activity and you neglect to take immediate action to address the issue, you may be held accountable for sums that exceed the scope of a basic landlord policy.

Special Assessment Coverage

In addition to lost rent and liability, you should look at special assessment coverage. A special assessment is a fee levied by an owner’s association on community association property owners. These special assessments can be added to existing association fees for various reasons, including necessary repairs or improvement projects in the building or neighborhood. Property owners can purchase special assessment insurance, often referred to as title insurance, to circumvent the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments that weren’t incorporated in the original purchase documents. If your rental properties are accountable for homeowner’s association charges, this is one type of insurance that property investors should seriously consider.

Talk to a professional

To protect all your assets, it is critical to consult with an insurance expert to acquire the right coverage. What is more, as your investment portfolio changes, so should your insurance coverage. It is not just important but also empowering to review your insurance coverage annually and make the necessary modifications to keep you and your Greenwood rental properties fully protected. With this proactive strategy, you are guaranteed to maintain control over your insurance requirements.

Property owners of Greenwood are assisted by Real Property Management First Choice in determining the appropriate insurance policies and coverage. We have the ability to offer you access to professionals offering quality insurance policies at the most competitive rates. With the support of industry experts, you can be assured that you have the proper landlord insurance for a long and profitable rental property investing career. Contact us online or at 479-242-0791 for additional details.


Originally Published on September 20, 2019

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