Everyone knows how important insurance is, especially if you don’t have the right kind of insurance. Here are some types of insurance that every landlord should consider.
(Vision Real Estate is not an insurance company and these are only recommendations. Please speak with a licensed insurance agent for what is right for you and your properties)
Some people assume that water damage is covered under your home owners policy. Unfortunately, most home owner policies cover water damage caused by “internal” plumbing. Meaning, if the flood is caused by outside the foundation walls it is not covered. If the flooding was caused by a broken sprinkler line, it’s not covered. Excessive rain, no way! Flood insurance covers that major storm, the bad slope of the street, etc.
Basic homeowner policies only cover the resident owner and his/her family. If a tenant is injured on the property, it rarely will cover those expenses. Speak with a licensed insurance agent to figure out the best landlord insurance policy for your investment property.
This policy covers the cost of rebuilding structure (or repairing) as well as homeowners owners contents. Does your policy cover in case of arson, electrical, etc.? A policy that protects your belongings in the event of a fire is never a bad idea.
Vacant Property Insurance
A home that is sitting vacant can have unforeseen damages, such as vandalism, squatting, flooding, etc. Did you know that when a home is deemed vacant by an insurance company it often excludes coverage started by vandalism (even if they burn down the house!) They can even cancel out your policy because the home is vacant. Most companies have a short term endorsement that you can add to cover a vacant home while you are working on getting it rented.
Well, we do live in Utah. Does your home owners policy cover if there is a little “shake up”? An earthquake policy will cover damages caused by the earth’s movement.
Personal Umbrella Policy
The maximum on your regular policy can quickly be passed up in the event of injury, negligence & damages. You can get an umbrella policy to cover over and above what your regular policy covers, protecting you and your assets from lawsuits.