Insuring Investment Property

Insuring Investment Property
Posted by Raymond Smith, Dec 12, 2014 8:45 PM
Property investment is a big thing for a landlord to create assets for his/her future. It does not end with owning an asset as investment insurance is the next step for the owner to secure the property.

What is investment insurance?

Investment insurance protects the property owner from any damage caused by natural disasters, bad tenants, and any other perils. Homeowner or property landlord should carefully consider insurance options and check the contents that it covers. It is advised to approach a trusted broker and buy appropriate insurance coverage.

How to choose insurance for investment properties?

Landlords overlook insurance for investment properties. One has to choose insurance carefully by checking all the coverage aspects. There are insurances for complete coverage of property and specific coverage for its contents. So, understanding the type of coverage required for the property is important.

First rule of thumb for choosing insurance is to set a budget for it. Decide on the premium amount that your pocket can tolerate as they can vary with insurance. Specific insurance coverage is a viable option for property owners of certain areas only. In any case, complete coverage is the best option for investment property as a landlord is unsure of the natural calamities that can occur suddenly.

Second rule of thumb is to approach a trusted broker or a professional agent of the insurance company to decide on the type of investment insurance. A professional agent gives lot of options with a particular company whereas, a broker provides the best value for the customer as he doesn’t represent the company.

Special tip: Some insurance doesn’t cover disaster caused by floods. So, landlord shouldn’t hesitate to take additional coverage and prevent massive losses.

Why do properties need investment insurance?

Investment properties with insurance coverage evade huge losses for landlords that could bring financial crisis. Insurance provides either partial coverage or full coverage and even protects from liability lawsuit. Your life savings could vanish in a jiffy if your real estate investment is not properly insured. It plays a vital role in a successful career of investment property.

Let’s summarize the article with keynotes that a landlord should consider:
1. Understand the type of coverage required for property.
2. Consider your pocket before choosing the premium.
3. If required, go for additional insurance coverage.
4. Approach a professional agent or broker to decide on the insurance type.
This article should assist a landlord with tips on how to choose insurance for investment properties and its importance.

If you would like to know more about protecting your investment give us a call or click on the “Request a Quote” button at the top.

Smith Insurance Agency, Inc.
"Protecting Families in FL"

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