A lot of property owners feel like the cost of landlord insurance is too much to handle. In fact, a lot of people may 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 may require further insurance to protect yourself and your property from harm.
For landlords in Sandusky, you should make sure you have insurance that covers more than just your rental house. Comprehensive coverage for lost rent, complete accountability, and unexpected special fees can ensure that you have the right insurance for your situation. This will give you assurance that your investment is safe.
Incidents may require significant repairs
Most investors recognize the value of getting insurance coverage to protect their investments in case of unexpected incidents. Storm damage, fire, and other events can bring about extensive repairs and make the property uninhabitable. With a basic landlord insurance policy, you can’t protect yourself from losing rent. This is where fair rental income protection becomes effective.
Protect your cash flow
Sometimes also named fair rental value coverage, this form of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable after an approved claim. This kind of coverage is part of some landlord insurance policies, but not many of them. If yours does not, and lost rent is a concern for you, it is vital to investigate adding fair rental income protection to your base policy. This additional coverage can give you financial security, letting you know that your income is protected even if something surprising happens.
Additional liability coverage
A comprehensive landlord insurance policy will protect you from the cost of property damage and some kinds of risks. Numerous landlord insurance policies provide coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. But for some property investors, other potential liability mean they need more coverage. In this case, getting additional liability coverage may be the best thing to do. For illustration, if a tenant experiences a break-in while renting one of your properties or does something illegal and you do not take immediate action to address the issue, you could be held responsible for more than what a basic landlord policy covers.
Special Assessment Coverage
Aside from lost rent and liability, you need to examine special assessment coverage. A special assessment is a fee collected by an owner’s association on community association property owners. These special assessments can be added to present association fees for a number of factors, like building or neighborhood fixes or improvements that need to be made. Property owners can purchase special assessment insurance, which is also known as title insurance, to protect themselves from the unwelcome surprise of a large special assessment. This coverage protects your property from special assessments that were not written 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
It is crucial to consult with an insurance expert about getting the coverage you need to protect all your assets. On top of that, as your investment portfolio changes, so should your insurance coverage. Reviewing your insurance coverage annually and making the changes needed to keep you and your Sandusky rental properties fully protected is not just essential but also empowering. You will always be in charge of your insurance needs if you take this proactive method.
Real Property Management Clarity Team helps property owners in Sandusky figure out what insurance plans and coverage they need. We can put you in touch with professionals offering quality insurance policies at the most competitive rates. If you work with industry experts, you can be certain that you have the correct landlord insurance for a long and profitable rental property investing career. Contact us online or at 567-200-2320 for more information.
Originally Published on September 20, 2019
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