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Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.For many property owners, the cost of landlord insurance can feel like a burden. In fact, many may feel that they are overpaying for even a basic landlord insurance policy. But if you are a rental property investor with only basic coverage, you may need more insurance to protect yourself and your property from disaster.

For landlords in Henrico County, it is critical to obtain insurance that covers more than just your rental house. Comprehensive coverage for neglected rent, full responsibility, and unexpected special assessments will guarantee that you’ve got the right insurance for your situation, giving you the composure that your investment is protected.

Incidents may require significant repairs

The majority of investors understand the value of getting insurance coverage to protect their investment in the event of a large loss. Storm damage, fire, and other events can bring about extensive repairs and render the property uninhabitable. With a basic landlord insurance policy, you have no way to protect yourself from the lost rent. This is where fair rental income protection becomes effective.

Protect your cash flow

Sometimes also called fair rental value coverage, this kind of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable following a qualified claim. Some landlord insurance policies provide this type of protection, but others do not. If yours does not, and lost rent is a concern for you, then it is imperative to investigate adding fair rental income protection to your base policy. This additional coverage may act as a layer of security, guaranteeing that your income is protected even in unforeseen events.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and specific kinds of obligations. Several landlord insurance policies include coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. Nevertheless, for some property investors, other possible hazards necessitate additional protection. In these situations, additional liability coverage may be the best solution. For illustration, if a tenant experiences a break-in while renting one of your properties or participates in unlawful conduct and you do not take immediate action to address the issue, you could be held accountable for more than a basic landlord policy will cover.

Special Assessment Coverage

Aside from lost rent and liability, you might want special assessment coverage. A special assessment is a cost charged by an owner’s association on community association property owners. These special assessments can be applied to existing association fees for a variety of reasons, including building or neighborhood repairs and improvements. Property owners can purchase special assessment insurance, often known as title insurance, to avert the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments not included in the original purchase documents. If your rental properties are liable for 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, you should consult with an insurance expert to figure out the coverage you require. Moreover, as your investment portfolio changes, so should your insurance coverage. It is not just essential but also empowering to review your insurance coverage annually and make any required changes to keep you and your Henrico County rental properties fully protected. This proactive plan guarantees that you always have control over your insurance needs.

Real Property Management Richmond Metro helps Henrico County property owners with choosing the insurance policies and coverage they require. We will connect you with professionals offering quality insurance policies at the most competitive rates. With industry experts at your fingertips, you can be sure that you have the necessary landlord insurance for a long and profitable rental property investing career. Contact us online or at 804-823-8882 for further details.


Originally Published on September 20, 2019

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