Many property owners find it hard to pay the cost of landlord insurance. Others may even 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 need more insurance to protect yourself and your property from disaster.
It is essential for landlords in Glendale to have insurance that covers more than just your rental house. Comprehensive coverage for lost rent, full liability, and unexpected special charges can ensure that you have the right insurance for your situation. You can rest easy knowing that your investment is safe.
Incidents may require significant repairs
Most investors are mindful of the value of getting insurance coverage to protect their investment in case of a major loss. Storm damage, fire, and other events can make the property uninhabitable and necessitate extensive repairs. Your basic landlord insurance policy won’t protect you from losing rent. This is where fair rental income protection takes effect.
Protect your cash flow
Sometimes also called fair rental value coverage, this sort of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable following a covered claim. Some landlord insurance policies incorporate this kind of protection, but many do not. If yours does not, and lost rent is a concern for you, it is important to investigate adding fair rental income protection to your base policy. This additional coverage can give you monetary assurance, which assures you that even in unanticipated events, your income is protected.
Additional liability coverage
A comprehensive landlord insurance policy will protect you from the cost of property damage and some forms of liability. Several landlord insurance policies compensate 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. Under such circumstances, additional liability coverage could be an excellent option. For instance, if a tenant experiences a break-in while renting one of your properties or partakes in criminal activity and you do not take immediate action to address the issue, you could be held liable for amounts beyond what a basic landlord policy will cover.
Special Assessment Coverage
Apart from lost rent and liability, you should think about special assessment coverage. A special assessment is a fee levied by an owner’s association on community association property owners. These special assessments can be included in current association fees for several reasons, including required building or community improvement projects. Property owners can purchase special assessment insurance, sometimes known as title insurance, to steer clear of the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments not covered by the original purchase documents. If your rental properties are included in 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, it is a good idea to consult with an insurance expert to receive the protection you need. Furthermore, as your investment portfolio changes, so should your insurance coverage. Reviewing your insurance coverage annually and making the required changes will not only be vital but also encourage you to keep you and your Glendale rental properties fully protected. This proactive method guarantees your continuous control over your insurance requirements.
Real Property Management Vision helps Glendale property owners decide on whatever coverage and policies they require. We can link you with professionals offering quality insurance policies at the most competitive rates. Industry experts on your side will help you to be sure you have the correct landlord insurance for a long and profitable rental property investing career. Contact us online or at 818-233-8789 for further details.
Originally Published on September 20, 2019
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