It’s not a secret at all that Greensboro rental property owners need good quality insurance to protect their real estate investments. Though, there are countless different kinds of insurance, each with its own coverages and limits. That can make figuring out which insurance you need a relatively real concern. Landlord or Investor insurance, landlord liability, umbrella, and flood insurance are just a few examples of the kinds of insurance that are out there. Different types of insurance are designed to protect different things and understanding what each delivers can make you discover 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 meant to secure and protect an 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 this is exactly why several landlords demand that their tenants purchase their own renter’s insurance policy and sometimes tenant liability insurance, additionally.
Landlord Liability insurance is different from Investment Property Insurance but is often included. It has something to do with the fact 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 created not merely to care for and protect your rental home but, along with that, the financial aspects of your investment also.
An umbrella policy is actually what it sounds like and appears 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. Considering that being a landlord corresponds to both of these labels, it is worth examining 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 significant to point out, nevertheless, that although an umbrella policy usually does not cover losses to your rental property due to a flood. In many respects, 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 available. Though other Greensboro property owners assume that they don’t need flood insurance because their property is not located in a “high-risk” area, the actuality is that floods can and do happen anywhere, and usually strike without warning. In any case, whether from a burst pipe or an unusual amount of rain, floods damage and destroy homes on a regular basis.
With too many different types of insurance present, it’s necessary to examine your coverage amounts thoroughly and be sure that you are not paying for insurance you don’t need, but likewise that the insurance you do have provides the right amount of coverage. In any case, perceiving whether you have the right insurance coverage can be a real concern unless you have reliable industry experts in your team that you can turn to for help. At Real Property Management of the Triad, 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, feel free to contact us online or by phone at 336-355-6677 or 336-777-7444. We’ll be glad to answer any of your questions.
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