As the housing industry continues to bounce back, savvy real estate investors have been snapping properties to start or expand their portfolios. In the rush to secure the choicest properties, sometimes practicalities are given less of a priority. Many property owners fail to obtain the right insurance coverages so their investments are protected. In some cases, this could be a money-saving measure as they try to save money by taking out less insurance.
Must-Have insurance Policies
General and Personal Liability
A general liability policy is typically designed to cover a number of types of damages like fire and the like. Ideally, the limits should be established to offer protection to the property owner. A personal liability policy protects a property owner in the event that a renter or visitor is injured on the property or if someone’s property is damaged.
With the skyrocketing costs of construction in recent years, it’s important for a property owner to have protection to replace the actual costs of the structure. This is an important fact to note as recent research has highlighted the fact that about two-thirds of homeowners in America are not insured for an amount generous enough to allow them to actually replace what they’ve lost.
Loss of Income
If a property becomes uninhabitable, its owner faces a possibly indefinite period of lost income. One way to soften this occurrence is to take out an additional insurance policy that covers this event. For example, a fire could cause so much damage that the building sits vacant for one or two months before restoration work even begins. During this time, the property owner is still responsible for all costs associated with the property such as property taxes and regular homeowners insurance. A policy that still provides them with income during this time can make a difference in the success or failure of their real estate investment career.
At Real Property Management Las Vegas, they are a wealth of information in terms of the recommended insurance policies for real estate investors. Contact them today to learn more.