As the housing market continues to fluctuate, renting is at an all-time high, and rental properties can be profitable. However, they need to be set up properly. A wise move when planning your rental properties is protecting your investment with excellent insurance. If you are becoming a landlord soon, you will need to determine what plan works best for you and your budget.
There are a variety of options available to landlords seeking to insure their properties. The first is rental property insurance, which covers damage to their buildings and land from events like vandalism, fire, and weather-related damage. The second is liability insurance, which protects against legal claims against the insurance holder, such as compensation for an accident that occurred on their property.
The cost of a specific policy varies based on what level of coverage and claims payout is available under the policy. Before signing away on a package, be sure to understand exactly what you are getting and what it will cost you. Every package is different; some plans have deductibles, some don’t. Some plans cover the cost of an event before depreciation, while others only pay out the current market value.
Also, be sure to research the company that you are buying insurance from. There is no shortage of sketchy companies in the insurance market. Simple steps can eliminate a lot of hassle, such as seeking referrals and researching the company’s financial standing.
Remember, there are plenty of other actions you can take as a landlord to safeguard your investment, such as requiring tenants to purchase renters insurance, committing to quality maintenance of your property, and providing training to tenants about safety procedures (i.e., fire extinguisher locations and main water line shut off operation).
To determine what coverage makes sense for you, please reach out to TJ Woods Insurance Agency. We will be happy to sit down with you and determine what type of coverage you need as a landlord.
Have you purchased rental property insurance before? If so, how can your experience be improved?
