It naturally follows that Peachtree Corners property owners need good insurance to shield their real estate investments. Nevertheless, there are numerous insurance types, each with its own coverages and limits. Consequently, it can be difficult to determine which insurance you need. There are many options available, including landlord or investor insurance, landlord liability, umbrella, and flood insurance, to name a few. 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 one of the most valuable types of insurance that rental property owners desire. Investment property is protected by landlord or investment property insurance, as opposed to homeowner’s insurance. Typically, this insurance supports the rental home and exterior features, such as sheds and fences. Landlord insurance won’t cover your tenant or their personal property, which is why the vast bulk of Peachtree Corners property managers demand their tenants to purchase renter’s insurance and sometimes tenant liability insurance.
Landlord Liability Insurance
Landlord liability insurance is another essential type of coverage you should be aware of. Despite being distinct from insurance for an investment property, landlord liability insurance is frequently covered by policies. This is due to the fact that this type of insurance covers losses associated with damage, theft, or vandalism caused by tenants or their guests, as well as liability in the event of injury. The purpose of landlord liability insurance is to safeguard both the financial aspects of your investment and your rental property.
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 being a landlord falls into both of these categories, you should consider purchasing an umbrella policy to protect your assets if you are sued for damages that exceed the limits of your other insurance policies. In most cases, these policies also cover the insured against damage to third parties’ property, loss of rent, and injuries brought on by third parties, such as tenants.
Flood Insurance
It’s crucial to remember that a flood-related loss to your rental property is typically not covered by insurance, not even an umbrella policy. For numerous reasons, flood insurance is typically sold as a separate policy through the National Flood Insurance Program (NFIP). This kind of insurance usually covers the actual cash value (not the cost to replace) of the home’s physical structure and, if applicable, a detached garage. Even though lots of Peachtree Corners property owners assume they do not require flood insurance because their property is not located in a “high-risk” area, the truth is that floods can and do emerge wherever, and they commonly strike without warning. Floods frequently cause home destruction and damage, whether they are caused by burst pipes or unusually heavy rain.
With so many different kinds of insurance available, it’s crucial to carefully 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 right level of protection. But without trustworthy industry insiders on your team, determining whether you have the appropriate insurance coverage can be difficult. At Real Property Management Greenway, we can advise you on the best insurance coverage to use to safeguard your valuable assets and financial stability. To learn more, contact us online or call us at 770-771-6102.
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