Insurance is just a way to protect yourself from some unforeseen event. You wouldn’t want to have to shell out large amounts of money because you were uninsured. Here are some of the reasons that having insurance is a good idea if you own investment property.
Structural Damage Protections
Fires and other types of physical damage can occur without warning to your property. Your insurance policy will cover these types of events if or when they do occur. This will allow you to either rebuild or cash out the value of your lost investment property. This provides you with a little assurance that you won’t be out your investment.
Renter Damage Control
If you plan on renting out your investment property, you need to look into getting renter’s insurance. Even the best renters may cause substantial damage to your property. Having this type of insurance will allow these more costly repairs to be completed without you having to pay for them yourself. Look into companies like Northeast Insurance Agency to get started on this process.
Personal Property Insurance
You want to protect any personal property that is stored on the premises of your investment property. This may include items such as lawn maintenance equipment or even furnishings. You never know when things might be damaged or stolen. This insurance will allow you to be reimbursed for the value of the lost or stolen items so that you can replace them.
Liability Concerns
There are always liability concerns when you’re a landlord. Someone could get injured while on your investment property. This could result in you having to go to court to settle a personal injury claim. Liability insurance will protect your assets from these types of claims and lawsuits.
Loss of Income Coverage
If you rely on your investment property for income, having a loss of income insurance plan may prove to be beneficial. This way if you aren’t actively renting out your property, you can still receive some compensation for what you’re losing. This type of insurance is only needed if you’re a landlord and want some protections from your property remaining vacant.
You most likely have insurance on your own home and car. This is just another means for you to protect your investment property from loss or damage. Having to shoulder the financial burden of making these repairs yourself may prove to be too costly. Insurance is designed to protect you and your investment property from loss.
