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Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.For several property owners, the cost of landlord insurance may seem like an enormous expense. Actually, some people might feel that they are overpaying for even a basic landlord insurance policy. But if you are a rental property investor with only basic coverage, it might be worth considering acquiring additional insurance to protect yourself and your property from unforeseen events.

For landlords in Lebanon, it is crucial to have insurance that covers more than just your rental house. Comprehensive coverage for lost rent, full liability, and unanticipated extra costs can ensure that you have the right insurance for your situation, giving you the serenity that your investment is protected.

Incidents may require significant repairs

Most investors recognize the value of getting insurance coverage to protect their investment in the event of catastrophic damage. Storm damage, fire, and other events can result in extensive repairs and make the property uninhabitable. With a basic landlord insurance policy, there’s not much you can do to safeguard yourself against lost rent. This is where fair rental income protection comes into the picture.

Protect your cash flow

Sometimes also called fair rental value coverage, this type of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable because of a covered claim. Some landlord insurance policies incorporate this kind of policy, but many do not. If yours does not, and lost rent is a concern for you, it is critical to investigate adding fair rental income protection to your base policy. This additional coverage can give you peace of mind, knowing that your income is protected even in circumstances that are unforeseen.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and certain kinds of responsibility. Many landlord insurance policies have coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. However, for certain property investors, there are additional liabilities that need more coverage. If this is the case, additional liability coverage may be an excellent choice. Let’s say a tenant experiences a break-in while renting one of your properties or gets involved in illegal activities. If you don’t take immediate action to address the issue, you might end up being responsible for costs that go beyond what a basic landlord policy will cover.

Special Assessment Coverage

It’s worth considering special assessment coverage, as it can help protect you from lost rent and liability. A special assessment is a fee charged by an owner’s association to community association property owners. These special assessments can be tacked onto your regular association fees for a variety of reasons, like fixing up the building or making improvements in the neighborhood. Property owners can purchase special assessment insurance, also known as title insurance, to prevent the unwelcome surprise of a large special assessment. This coverage protects your property from special assessments that were not mentioned 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

To protect all your assets, it is a good idea to consult with an insurance expert who can help you get the right coverage. Also, as your investment portfolio changes, so should your insurance coverage. It is not just critical but encouraging to review your insurance coverage annually and make the appropriate modifications to keep you and your Lebanon rental properties fully protected. With this proactive approach, you’ll always be in control of your insurance needs.

Real Property Management Beacon helps property owners in Lebanon figure out the insurance policies and coverage that suit their needs. We can connect you with professionals offering quality insurance policies at the most competitive rates. When you collaborate with industry experts, you can feel assured that you’ve got the right landlord insurance for a long and profitable rental property investing career. Contact us online or at 603-448-8808 for additional details.

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