For so many property owners in Pocatello, the weight of landlord insurance can be overpowering. In fact, a lot of them could very well believe that they are overpaying for even a basic landlord insurance policy. However, if you are a rental property investor with only basic coverage, you may not have enough insurance to protect yourself and your property from disaster. For landlords in Pocatello, it is critical to have insurance that takes in more than just your rental house. Getting coverage for lost rent, full liability, and surprise special assessments can help ensure that you have the right insurance for your situation.
Most investors know the upside of getting insurance coverage to protect their investment in case of a significant loss. Storm damage, fire, and other events can result in extensive repairs and make the property uninhabitable for a period. With a basic landlord insurance policy, there is nothing you can do to protect yourself from the lost rent. This is where fair rental income protection comes into play.
From time to time, it is also called fair rental value coverage— this type of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable following a covered claim. Some landlord insurance policies include this type of coverage, although some do not. If yours does not, and lost rent is a concern for you, then it is important to investigate adding fair rental income protection to your base policy.
A comprehensive landlord insurance policy will protect you from the expense of property damage and other specific sorts of liability. Many landlord insurance policies include coverage for medical or legal costs if a tenant or guest is injured as a result of the property’s condition. However, for some property investors, there are more potential liabilities that require more coverage. In such circumstances, additional liability coverage could be a perfect choice. For example, if a tenant experienced a break-in while renting one of your properties or engages in illegal behavior and you forgot or refused to take immediate action to address the issue, you could be held liable for amounts beyond what a basic landlord policy will cover.
Along with lost rent and liability, you may need to examine what special assessment coverage is. A special assessment is a fee charged by an owner’s association on community association property owners. These special assessments can be integrated into existing association fees for a lot of reasons, which includes necessary repairs or improvement projects in the building or neighborhood. To avoid the unwelcome surprise of a large special assessment, property owners can purchase special assessment insurance, sometimes called title insurance. This type of insurance protects your property from special assessments that were not included in the original purchase documents. If your rental properties are subject to homeowner’s association fees, this is one type of insurance that property investors should seriously consider.
To protect all your assets, it is wise to talk to an insurance expert to get the coverage you need. Moreover, as your investment portfolio changes, so too should your insurance coverage. It is best to take a look at your insurance coverage annually and make the modifications necessary to keep you and your Pocatello rental properties fully protected.
The good news is that Real Property Management Pocatello can help. We assist property owners in finding out which insurance policies and coverage you need for your situation. We can connect you with insurance professionals who offer quality insurance policies at the most competitive rates. With industry experts on your side, you can be confident that you have the right landlord insurance for a long and profitable rental property investing career. Contact us online or call us at 208-234-1000 for more information.
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