Insurance For Rental Property
Do you own rental property? If you do, then there are certain things you need to be aware of when it comes to covering your insurance needs. Without the right kind or amount of coverage, you open yourself up to financial liability and losses that can be detrimental to your real estate business. Here are 4 different kinds of insurance you should be aware of if you are a real estate investor in Overland Park, KS.
Rental Property Insurance
First, you’ll want to make sure you have the right amount of rental property insurance so that if anything were ever to happen to your rental property, you would be able to replace it. If there are any liens on the property by the bank or other third party, then this is going to be a mandatory requirement anyway.
Renters Insurance
Next, what about your renters? Will you require them to own a renter’s policy? This may save you money by requiring them to carry a renter’s policy. It means your insurance company won’t be liable for their lost or damaged goods in the case of an event. A renter’s policy can also cover a renter’s liability if they were found responsible in a lawsuit. And this just means it’s one more layer between you the owner, and liability.
Income Replacement Insurance
What about when you don’t have anybody living in your rental property? Perhaps your last renters damaged your property and now you need some time to get it back to a place where its rentable. Wouldn’t it be nice to still be collecting rent while you get the property ready for the next tenants?
Liability Insurance
An umbrella liability insurance policy for your rental properties can be a nice way to protect yourself against any unknown liability. It can cover a variety of liability issues. Hence the name, “Umbrella” policy.
Conclusion
These are 4 types of insurance for rental properties that real estate investors shouldn’t leave home without. These expenses should be baked into your income projections and real estate investment calculations before you invest.