Skip to Content

Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.The cost of landlord insurance can pose a challenge for many property owners. Actually, numerous individuals get the impression that they are overpaying for even a basic landlord insurance policy. However, if you are a rental property investor with only basic coverage, it may be prudent to consider acquiring additional insurance to protect yourself and your property from sudden calamities.

In Bellingham, it is crucial for property owners to have insurance that covers more than just their rental house. Having the right insurance for your situation, such as comprehensive coverage for missed rent, full responsibility, and unplanned special assessments, can offer you the reassurance that your investment is secure.

Incidents may require significant repairs

Many investors understand the value of getting insurance coverage to protect their investment in the case of major damage. Storm damage, fire, and other events can bring about extensive repairs and make the property uninhabitable. With a basic landlord insurance policy, there is no way to defend yourself from the loss of rent. This is where fair rental income protection comes into play.

Protect your cash flow

Typically referred to as fair rental value coverage, this sort of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable as the outcome of a covered claim. However, this kind of coverage is not included in many landlord insurance policies. If your current policy does not cover it and lost rent is a concern for you, then it is advisable to investigate adding fair rental income protection to your base policy. This additional coverage can provide a financial safety net, reassuring you that your income is protected even in unpredicted circumstances.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and specific sorts of liability. Numerous landlord insurance policies provide coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. However, some property investors may require additional coverage to address potential liabilities beyond the norm. Given the circumstances, additional liability coverage might be the ideal option. For instance, if a tenant experiences a break-in while renting one of your properties or takes part in an illegal movement and you neglect to take immediate action to address the issue, you could be held to bear the costs that go beyond the coverage of a basic landlord policy.

Special Assessment Coverage

In addition to lost rent and liability, you need to take into account special assessment coverage. A special assessment is an amount imposed by an owner’s association on community association property owners. These special assessments can be integrated into existing association fees for various reasons, including vital maintenance or improvement projects in the building or locality. Property owners can purchase special assessment insurance, popularly referred to as title insurance, to circumvent the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments that were absent in the original purchase documents. If your rental properties are liable for homeowner’s association fees, this is one type of insurance that property investors should seriously consider.

Talk to a professional

To protect all your assets, it matters most to consult with an insurance expert to obtain the appropriate coverage. Also, as your investment portfolio changes, so should your insurance coverage. It is not just important but also advisable to review your insurance coverage annually and make the changes required to keep you and your Bellingham rental properties fully protected. This proactive approach ensures that you are always in control of your insurance needs.

Property owners of Bellingham are dedicated to helping Real Property Management Teyata in choosing the appropriate insurance policies and coverage. We can help you connect with professionals offering quality insurance policies at the most competitive rates. By leveraging the knowledge and expertise of industry experts, you can rest assured that you have the right landlord insurance for a long and profitable rental property investing career. Contact us online or at 360-856-1010 if you have additional concerns.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details