It is no secret that Beech Grove rental property owners require good quality insurance to protect their real estate investments. However, there are a lot of different kinds of insurance, each with its own coverages and limits. That can mean understanding which insurance you need can become quite a real issue. Landlord or Investor insurance, landlord liability, umbrella, and flood insurance are just a few examples of what’s out there. Since different types of insurance are designed to protect different things, realizing the intention or purpose for each can best aid you to know how to best protect your rental property assets with the correct type and amount of coverage.
Unlike homeowner’s insurance, Landlord or Investment Property Insurance is intended to safeguard investment property. This type of insurance covers the rental home and usually exterior features, such as sheds or fences. Landlord insurance does not cover your tenant or your tenant’s personal property so for this reason, some landlords want their tenants to purchase their own renter’s insurance policy and sometimes tenant liability insurance too.
Landlord Liability insurance is different from Investment Property Insurance but is often included. The reason for this is that this type of insurance covers losses related to damage, theft, or vandalism caused by tenants or their guests. It also covers liability in the event of an injury. This type of insurance is aimed not just to uphold or protect your rental home but the financial aspects of your investment, moreover.
An umbrella policy is simply what it seems to be: broad coverage for a rental property that adds an extra layer of protection for individuals who own property or have an occupation that is prone to lawsuits. Given that being landlord suits or fits both of these classifications, it is worth checking out an umbrella policy to protect your assets if you are sued for damages in excess of your other insurance policies. These policies also typically protect the insured against loss of rent or damages to other people’s property or injury caused by others, such as a tenant.
It is essential to mention, nonetheless, that though an umbrella policy usually does not cover losses to your rental property due to a flood. In many ways, flood insurance is usually offered as a separate policy that must be purchased through the National Flood Insurance Program (NFIP). This type of insurance typically covers the actual cash value (not the replacement cost) of the physical structure of the home and a detached garage, if present. Whereas most Beech Grove property owners believe that they don’t need flood insurance because their property is not located in a “high-risk” area, the fact is that floods can and do happen anywhere, and frequently strike without warning. At any rate, whether from a burst pipe or an unusual amount of rain floods damage and destroy homes on a regular basis.
With a considerable number of different types of insurance out there, it’s vital to examine your coverage amounts closely and make certain that you are not paying for insurance you don’t need, but, furthermore, that the insurance you do have provides the right amount of coverage. Nonetheless, being aware, at any rate, if you have the right insurance coverage can be trouble until you have reliable industry experts on your team. At Real Property Management Indianapolis Edge, we can help you determine how to best protect your valuable properties and your financial well-being with the right insurance coverage. To learn more, contact us or call us at 317-420-8500 for additional info.
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