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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 can seem like a weight to bear. In fact, many individuals might perceive that they are overpaying for even a basic landlord insurance policy. However, if you are a rental property investor with only basic coverage, it may be necessary to obtain additional insurance to protect yourself and your property against potential calamities.

Landlords in Chattanooga should get insurance that covers more than just your rental house. Comprehensive coverage for missed rent, complete responsibility, and unanticipated additional expenses guarantees that you have the right insurance for your situation, thereby giving you the assurance that your investment is protected.

Incidents may require significant repairs

Most investors recognize the value of getting insurance coverage to protect their investment in case a significant loss happens. Storm damage, fire, and other events can result in extensive repairs and make the property uninhabitable. A basic landlord insurance policy has no ability to protect yourself from the lost rent. This is where fair rental income protection comes into play.

Protect your cash flow

Commonly 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 a covered claim. While landlord insurance policies exclude this type of coverage, some provide it. Should yours not, and lost rent is a concern for you, it is imperative to investigate adding fair rental income protection to your base policy. This additional coverage might give you an extra layer of protection, thereby assuring you that even in unfortunate events, your income is protected.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and specific types of liability. Various landlord insurance policies offer coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. Other potential liabilities, however, call for extra coverage for some property investors. In such circumstances, additional liability coverage may be the best approach. For example, if a tenant experiences a break-in while renting one of your properties or is involved in a crime 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

Besides lost rent and liability, you ought to think about special assessment coverage. A special assessment is a fee collected by an owner’s association on community association property owners. For several reasons, such as necessary building or community improvement projects, these special assessments can be added to existing association fees. Property owners can purchase special assessment insurance, sometimes called title insurance, to prevent the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments that were excluded 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 would be wise to consult with an insurance expert to get the right insurance for you. In addition, as your investment portfolio changes, so too should your insurance coverage. It is imperative and strongly advised to review your insurance coverage annually and make the essential changes to keep you and your Chattanooga rental properties fully protected. This proactive method guarantees your constant control over your insurance needs.

Real Property Management Your Home assists Chattanooga property owners in deciding which insurance policies and coverage they need. We can put you in contact with professionals offering quality insurance policies at the most competitive rates. With access to industry experts, you can feel confident that you have the appropriate landlord insurance to promote a profitable rental property investing career. Contact us online or at 423-704-9944 if you have additional questions.

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