A lot of property owners find the cost of landlord insurance to be a financial strain. In fact, some people might think that they are overpaying for even a basic landlord insurance policy. Having more comprehensive insurance to protect yourself and your property from disaster may be necessary for rental property investors who only have basic coverage.
It is critical for Fort Worth landlords to carry insurance that covers more than just your rental house. Make sure you have the right insurance for your situation, including comprehensive coverage for skipped rent, full accountability, and sudden additional assessments, so you can rest easy knowing that your investment is protected.
Incidents may require significant repairs
Most investors are familiar with the value of getting insurance coverage to protect their investments in the event of major damage. Storm damage, fire, and other events can cause extensive repairs and make the property uninhabitable. Nothing will protect you from rent loss if you have a basic landlord insurance policy. This is where fair rental income protection starts to affect.
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. Even though many landlord insurance policies do not cover this, there are a few that do. If yours does not, and lost rent is a concern for you, then you must investigate adding fair rental income protection to your base policy. This additional coverage can serve as a safety net, guaranteeing that your income is protected in the event of unanticipated circumstances.
Additional liability coverage
A comprehensive landlord insurance policy will protect you from the cost of property damage and particular kinds of liability. Many landlord insurance policies include coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. While some property investors may not need as much coverage due to other possible risks, others may. If this is the case, you should consider getting additional liability coverage. Take this scenario: if a tenant experiences a break-in while renting one of your properties or involve is criminal activity, if you take too long to take immediate action to address the issue, you could end up paying out more than what a basic landlord policy will cover.
Special Assessment Coverage
Aside from lost rent and liability, special assessment coverage is something to consider. A special assessment is a fee imposed by an owner’s association on community association property owners. These special assessments can be added to present association fees for numerous uses, such as essential building or neighborhood repairs or enhancement initiatives. Property owners can purchase special assessment insurance, sometimes called title insurance, to steer clear of the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments that weren’t part of the original purchase documents. If your rental properties are accountable to homeowner’s association dues, this is one type of insurance that property investors should seriously consider.
Talk to a professional
Consult with an insurance expert to determine what kind of coverage you need to protect all your assets. In addition, as your investment portfolio changes, so should your insurance coverage. It is not just vital but empowering to review your insurance coverage annually and make the adjustments necessitated to keep you and your Fort Worth rental properties fully protected. This proactive approach puts you in command of your insurance requirements at all times.
Insurance policy and coverage recommendations are provided by Real Property Management Meridian to property owners in Fort Worth. We can put you in touch with professionals offering quality insurance policies at the most competitive rates. Having industry experts advise you on landlord insurance can give you peace of mind that you’re covered for a long and profitable rental property investing career. Contact us online or at 817-678-8787 for additional details.
Originally Published on September 20, 2019
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