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Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.The cost of landlord insurance is a financial strain for many property owners. In actuality, a lot of people might think that they are overpaying for even a basic landlord insurance policy. But if you are a rental property investor with only basic coverage, it may be necessary to have additional insurance to protect yourself and your property from disaster.

For landlords in Virginia Beach, it is an excellent idea to have insurance that covers more than just your rental house. You may rest easy knowing that your investment is protected with the right insurance for your situation, which includes comprehensive coverage for lost rent, complete responsibility, and sudden additional fees.

Incidents may require significant repairs

The value of getting insurance coverage to protect their investment in case of a major loss is something that most investors need to be aware of. Storm damage, fire, and other events can lead to extensive repairs and make the property uninhabitable. There is no way of saving yourself from rent loss with just a basic landlord insurance policy. This is where fair rental income protection takes effect.

Protect your cash flow

Occasionally referred to as fair rental value coverage, this kind of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable due to an insured claim. This sort of coverage is included in some landlord insurance policies, but it is not included in many. If yours does not, and lost rent is a concern for you, you should investigate adding fair rental income protection to your base policy. If you want peace of mind knowing that your income is protected no matter what happens, this additional coverage can be a lifesaver.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and certain kinds of accountability. Numerous landlord insurance policies include coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. Nevertheless, additional coverage may be necessary for certain property investors due to other possible risks. It could be wise to get additional liability coverage in such a situation. For example, if a tenant experiences a break-in while renting one of your properties or commits an offense and you delay taking immediate action to address the issue, you may face consequences that exceed the coverage of a basic landlord policy.

Special Assessment Coverage

In addition to lost rent and liability, it is important to consider special assessment coverage. A special assessment is a fee levied by an owner’s association on community association property owners. If the building or community needs repairs or improvements, for example, the current association fees can be supplemented by these special assessments. Property owners can purchase special assessment insurance, sometimes referred to as title insurance, to protect them against the unwelcome surprise of a large special assessment. This coverage protects your property from special assessments that were not stated 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

Get the coverage you need by consulting with an insurance expert to protect all your assets. Also, as your investment portfolio changes, so should your insurance coverage. Reviewing your insurance coverage annually and making any required adjustments to ensure that you and your Virginia Beach rental properties are fully protected is not only crucial, but it also empowers you. You will always have control over your insurance requirements with this proactive strategy.

When it comes to choosing the right insurance products and coverage, Real Property Management Hampton Roads is here to help property owners in Virginia Beach. We can connect you with professionals offering quality insurance policies at the most competitive rates. When you collaborate with industry experts, you are safe knowing that you have the appropriate landlord insurance for a long and profitable rental property investing career. Contact us online or at 757-395-4274 for more information.

 

Originally Published on September 20, 2019

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