Property Management Blog
If you are an investment property owner and want to help lower your risk at your property, purchase the right kind of rental property insurance policy. Start by calling and discussing your property insurance coverage with your agent. This would be especially true if you don't have a policy that was written specifically for rental property. This should be done at least annually.
Occasionally, we find insurance agents that don't have experience with rental property coverage writing a policy with inadequate coverage for our owners. This puts the owner and their property at risk should something go wrong. The correct policy and coverage is the most important thing you can buy for your property. Here are a few examples of items you should ask your agent about. Does your policy have:
• Coverage for vandalism?
• Coverage for water damage?
• Coverage for Ordinance Law (see last month's article)?
• Coverage if the property is vacant for more than 30 days? Most policies DO NOT provide coverage if a home is vacant for more than 30 days!
• Coverage for Loss of Rent. If there was a fire, repairs could take many months. Would your policy pay the rent while being rebuilt?
• Coverage amounts that would rebuild the property if there was a fire? The cost of construction has gone up, are you covered?
• Enough General liability coverage if there was an accident at the property?
Nobody likes to pay insurance premiums, but proper insurance is a critical part of properly managing your property. After 30 years in the property management business, we've seen owners who were glad they had proper types of coverage and coverage amounts, as well as owners who wished they'd purchased the proper coverage. A wise use of your investing time includes a review of your coverage with an experienced agent who knows investment property.
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- Michael Francis