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Asset Protection & Insurance: Is Your Real Property Management Delta Rental Property Covered?

Filling Out Insurance Paperwork with a Model House in the Forefront

Searcy landlords need high-quality insurance to safeguard their real estate investments. However, there are numerous varieties of insurance, and each has unique coverage and limits. This can make determining which insurance you need quite difficult. Among the options available are landlord or investor insurance, landlord liability, umbrella, and flood insurance. Seeing as various kinds of insurance are designed to protect specific items, knowing the function of each can aid you in deciding how to protect the assets of your rental property with the suitable type and amount of coverage. 

Landlord Insurance 

Landlord insurance is among the most essential forms of insurance for owners of rental properties. Landlord or investment property insurance shields investment property, unlike homeowner’s insurance. Typically, this insurance supports the rental home and exterior features, such as sheds and fences. Most Searcy property managers require their tenants to buy their own renter’s insurance policy, as landlord insurance does not cover your tenant or your tenant’s personal property, and occasionally tenant liability insurance as well. 

Landlord Liability Insurance 

Landlord liability insurance is a different crucial type of insurance you should be aware of. Landlord liability insurance varies from investment property insurance but is typically part of the policy. This is due to the fact that this kind of insurance pays for losses resulting from vandalism, theft, or damage committed by tenants or their visitors, as well as liability in the event of an injury. Your rental property and the financial aspects of your investment are protected by landlord liability insurance. 

Umbrella Insurance 

An umbrella policy is precisely what it sounds like: broad protection for a rental property that offers an additional layer of security for those who own real estate or work in a field that is subject to lawsuits. Since the fact that being a landlord falls under both of these categories, you should think of buying an umbrella policy to protect your assets in the event that you are sued for damages that surpass the limits of your other insurance policies. Typically, these policies also safeguard the insured against rent loss, damage to other people’s property, and bodily harm caused by someone else, such as a tenant. 

Flood Insurance 

It’s important to remember that a flood usually won’t cause losses to your rental property, not even those covered by an umbrella policy. Flood insurance is typically sold separately as a separate policy through the National Flood Insurance Program (NFIP) for many reasons. The physical structure of the house and any detached garages, if any, are typically insured for their actual cash value rather than their replacement cost. Though many Searcy property owners believe they don’t require flood insurance because their home is not situated in a “high-risk” area, the truth is that floods can and do happen anywhere and frequently occur without warning. Floods usually cause home damage and destruction, whether they are caused by a burst pipe or an exceptionally large amount of rain. 

Given the wide variety of insurance options available, it’s important to closely consider your coverage amounts to both make sure you aren’t paying for insurance you don’t need and that the insurance you do have offers the appropriate level of coverage. But without trustworthy industry insiders on your team, determining whether you have the appropriate insurance coverage can be difficult. Real Property Management Delta can help you select the best insurance coverage to guard your valuable properties and financial well-being. To learn more, contact us online or call us at 501-404-0674.

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