Plenty of investors appreciate the objective of maintaining insurance coverage to safeguard their investment in the occurrence of a significant loss. Storm damage, fire, and other events can result in extensive repairs and make the property uninhabitable for a period. With a basic landlord insurance policy, there is nothing you can do to protect yourself from the lost rent. This is where fair rental income protection comes into play.
This is also called fair rental value coverage; this kind of insurance may aid in returning lost rent payments if your rental property is temporarily uninhabitable following a covered claim. There are landlord insurance policies that have this kind of coverage, but lots of policies do not have it. If yours does not, and lost rent is a concern for you, then it is important to investigate adding fair rental income protection to your base policy.
A comprehensive landlord insurance policy will protect you from the burden of property damage and other forms of liability. Many landlord insurance policies include coverage for medical or legal costs if a tenant or guest is injured as a result of the property’s condition. But for certain property investors, there are additional potential liabilities that require more coverage. In such scenarios, additional liability coverage may be the right choice. For instance, if a tenant experienced a break-in while renting one of your rental houses or engages in illegal behavior and you decline to take immediate action to manage the matter, you could be held liable for amounts beyond what a basic landlord policy will cover.
Aside from vanished rent and liability, you may also want to turn your focus to special assessment coverage. A special assessment is a figure collected by an owner’s association on community association property owners. These special assessments can be included in existing organization fees for various aims, such as necessary repairs or improvement projects in the building or neighborhood. To avoid the unwelcome surprise of a large special assessment, property owners can purchase special assessment insurance, sometimes called title insurance. This type of insurance covers your property from special assessments that were not included in the original purchase documents. If your rental properties are subject to homeowner’s association fees, this is one type of insurance that property investors should seriously consider.
To protect all your assets, it is necessary to verify with an insurance specialist to get the coverage you require. s your investment portfolio changes, so too should your insurance coverage. It is important to examine your insurance coverage annually and make the refinements needed to keep you and your Greenwood rental properties fully protected.
The acceptable news is that Real Property Management First Choice can help. We support property owners in selecting which insurance policies and coverage they need. We can introduce you to insurance professionals who offer quality insurance policies at the most competitive rates. With industry mavens backing you, you can be secure knowing that you have the right landlord insurance for a long and profitable rental property investing career. Contact us online or call us at 479-242-0791 for more information.