While owning rental property can provide you with a nice, steady income, real estate investors can also be open to a variety of losses, such as burglary and vandalism, as well as natural disasters like storms and floods. You can also be at risk of different lawsuits, including those that pertain to the injury of your tenants or their guests, and even various types of housing discrimination.
With that in mind, it is absolutely essential that you have the right type and amount of insurance coverage. This can start with the purchase of a good landlord or rental dwelling policy.
A landlord insurance policy can provide you with coverage on the property in terms of physical damage to the structure of the home that is cause by perils such as hail, wind, lightning, and fire. This type of policy can also cover any personal property that you have on-site for your tenant’s use, such as lawnmowers and appliances.
This type of coverage will also typically provide liability protection. In this case, if your tenant – or even a guest of the tenant – is injured on the premises, this portion of the policy can cover their medical expenses, as well as your legal fees.
You should also ensure that the landlord policy that you purchase will cover you for the loss of rental income that you may face if you are unable to rent out the property while it is being repaired.
When dealing with property insurance coverage, it isn’t the place to try to scrimp and save. While most people do not enjoy paying insurance premiums, the right coverage could essentially protect you from losing your property, as well as the ongoing income that it can provide.
Protecting your property can also come in the form of ensuring that it is properly maintained, and that your tenants have an avenue for contacting someone if or when an issue occurs. Turning over the day to day details to a property manager can allow you to continue reaping the benefits of property ownership, while at the same time providing you the opportunity to spend time doing other things.
For more details on the benefits of partnering with a property management company in Orlando and the Central Florida area, Contact Us.