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Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.Numerous property owners are overwhelmed by the high cost of landlord insurance. In fact, some individuals might believe that they are overpaying for even a basic landlord insurance policy. As a rental property investor, you need to have more comprehensive insurance to protect yourself and your property from disaster. Basic coverage may not be sufficient in these cases.

It is essential for Pikesville landlords to have insurance that covers more than just your rental house. Ensure that you have the right insurance for your situation, including comprehensive coverage for missed rent, full accountability, and unexpected extra charges. This will provide you with peace of mind, knowing that your investment is safeguarded.

Incidents may require significant repairs

Investors are well aware of the value of getting insurance coverage to protect their investments from potential significant damage. Storm damage, fire, and other events can result in extensive repairs and make the property uninhabitable. Nothing will safeguard you from rent loss if you have a basic landlord insurance policy. This is where fair rental income protection applies.

Protect your cash flow

Also known as fair rental value coverage, this type of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable due to a covered claim. Even though some landlord insurance policies do not include this, there are a few that do. If yours does not, and lost rent is a concern for you, then you must investigate adding fair rental income protection to your base policy. This additional coverage provides a valuable safety net, 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 particular forms of responsibility. Many landlord insurance policies include coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. However, for some property investors, other potential liabilities require more coverage. In such a scenario, getting additional liability coverage is a good idea. Consider this situation: if a tenant experiences a break-in while renting one of your properties or engages in unlawful acts, failing to take immediate action to address the issue could result in you having to pay more than what a basic landlord policy will cover.

Special Assessment Coverage

Aside from lost rent and liability, special assessment coverage is something to take into account. A special assessment is a fee mandated by an owner’s association on community association property owners. These special assessments can be included to present association fees for numerous reasons, such as necessary building or neighborhood repairs or enhancement actions. Property owners can purchase special assessment insurance, also known as title insurance, to stay away from the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments that weren’t included in the original purchase documents. If your rental properties are accountable to homeowner’s association dues, this is one type of insurance that property investors should seriously consider.

Talk to a professional

Consult with an insurance expert to determine the ideal coverage you need to protect all your assets. Moreover, as your investment portfolio changes, so too should your insurance coverage. It is not just imperative but encouraging to review your insurance coverage annually and make the needed modifications to keep you and your Pikesville rental properties fully protected. You’ll be in complete control of your insurance needs with this proactive approach.

Real Property Management Renowned is thrilled to offer insurance policy and coverage recommendations to property owners in Pikesville. We are happy to connect you with professionals offering quality insurance policies at the most competitive rates. With industry experts on your side, you can be sure that you have the appropriate landlord insurance for a long and profitable rental property investing career. Contact us online or at 410-442-6589 for additional details.

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