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Do You Have the Right Landlord Insurance?

Newtown Landlord Insurance PaperworkFor several property owners in Newtown, the rate of landlord insurance can seem like a liability. Essentially, a lot may discern that they are overpaying for even a basic landlord insurance policy. Whereas 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 Newtown, it is essential to have insurance that includes 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.

The bulk of investors see the principle of understanding insurance coverage to secure their investment in the incident 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.

At times also termed fair rental value coverage, this sort of insurance may help supersede lost rent payments if your rental property is temporarily uninhabitable following a covered claim. There are landlord insurance policies that involve this category of coverage, but several 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 expenses of property damage and individual categories 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 different property investors, other potential liabilities may require more coverage. In such situations, additional liability coverage may be the good pick. Perhaps, if a tenant experienced a break-in while contracting one of your properties or engages in illegal behavior and you do not take immediate action to deal with the problem, you could be held liable for amounts beyond what a basic landlord policy will cover.

Aside from lost rent and liability, you may want to study the special assessment coverage. A special assessment is a payment charged by an owner’s association on community association property owners. These special assessments can be required for different reasons, in addition to necessary repairs or improvement projects in the building or neighborhood. To evade the unwelcome surprise of a large special assessment, property owners can purchase special assessment insurance, sometimes called title insurance. This category of insurance safeguards 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 of your assets, it is essential to discuss this with an insurance expert to acquire the insurance you require. What is more, as your investment portfolio changes, so too should your insurance coverage. It is critical to scrutinize your insurance coverage annually and makes the changes required to get you and your Newtown rental properties fully protected.

The great news is that Real Property Management Prosperity can help. We aid property holders with administering 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 specialists on your side, you can be self-assured that you have the right landlord insurance for a long and profitable rental property investing career. Contact us online or call us at 267-433-4200 for more information.

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