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Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.The cost of landlord insurance might be perceived as a financial hardship by numerous property owners. Indeed, numerous individuals might believe that they are overpaying for even a basic landlord insurance policy. However, suppose you are a rental property investor with only basic coverage. In that case, it may be necessary for you to obtain additional insurance to protect yourself and your property against potential catastrophes.

Landlords in Eden should prioritize obtaining insurance that covers more than just your rental house. Having comprehensive coverage for skipped rent, complete liability, and unexpected additional charges can guarantee that you have the right insurance for your situation, granting you the assurance that your investment is protected.

Incidents may require significant repairs

The majority of investors are aware of the value of getting insurance coverage to protect their investment in case of substantial loss. Storm damage, fire, and other events might lead to extensive repairs and make the property uninhabitable. With a basic landlord insurance policy, you have no means to safeguard yourself against financial loss. This is where fair rental income protection becomes relevant.

Protect your cash flow

Also known as 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. While certain landlord insurance policies provide this particular coverage, many do not. If yours does not, and lost rent is a concern for you, it is crucial to investigate adding fair rental income protection to your base policy. This additional coverage might offer a financial safeguard, ensuring that your income is protected even in unexpected situations.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and specific forms of liability. Many landlord insurance policies include coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. Nevertheless, certain property investors may require additional coverage for other potential liabilities. If you find yourself in such situations, it would be advisable to consider obtaining additional liability coverage. For instance, if a tenant experiences a break-in while renting one of your properties or participates in illegal conduct and you do not take immediate action to address the issue, you may be held accountable for expenses that exceed the coverage by a basic landlord policy.

Special Assessment Coverage

Furthermore, it is advisable to consider special assessment coverage in addition to lost rent and liability. A special assessment is a charge imposed by an owner’s association on community association property owners. These special assessments can be added to existing association fees for a variety of purposes, such as essential repairs or enhancement initiatives inside the building or community. Property owners can purchase special assessment insurance, also known as title insurance, to protect themselves from the unwelcome surprise of a large special assessment. This policy protects your property from special assessments that are not specified 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.

Talk to a professional

To protect all your assets, you need to consult with an insurance expert to get the appropriate coverage. Furthermore, as your investment portfolio changes, so should your insurance coverage. It is not just necessary but empowering to review your insurance coverage annually and make the required changes to keep you and your Eden rental properties fully protected. This proactive strategy guarantees that you maintain constant control over your insurance requirements.

Real Property Management Magic Valley provides assistance to property owners in Eden in deciding on the necessary insurance plans and coverage. We can facilitate your connection with professionals offering quality insurance coverage at the most competitive rates. By working with industry experts, you can be assured that you possess the appropriate landlord insurance for a long and profitable rental property investing career. Contact us online or at 208-734-4001 for further details.


Originally Published on September 20, 2019

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