How do you insure an investment property? This important and often overlooked part of owning investment real estate is key to protecting your asset and your net worth. In most instances, Real Estate that is occupied by a tenant should be insured differently than a primary residence. The policy you will need for a home that is used as a rental is called a “dwelling fire”. A dwelling fire policy can cover major concerns such as fire, weather related events, vandalism and loss of rental income if the home can not be rented due to loss. In addition, dwelling fire policies can limit the liability that you have as the owner. We want to limit the liability to you in the event someone is injured in the home. The good news? These policies are often similar to the cost of an owner occupied homeowners insurance policy and are usually more customizable. The bad news…if you have the wrong policy, your claim could be denied. Not sure if you have the coverage you need? Here are a few recommended next steps:

If you are purchasing an investment property and are obtaining insurance quotes, be sure to let your agent know that the intended use is for rental purposes.
If you already own the home and have it rented, be sure to review the policy with your insurance agent every 2-3 years. Do you have adequate coverage? Do you have the correct policy for how the home is occupied? Would your agent recommend any changes to the policy?
Do you have enough liability coverage? (300k should be a minimum). If you have more than 1 property or a higher net worth, ask if an umbrella liability policy would be wise.
Have you shopped your policy with other carriers? Ensuring you have the best policy at the lowest possible rate can help minimize expenses.

A big part of building wealth is avoiding risk. The right insurance policy can ensure your home can be repaired or rebuilt if damaged and protect you from a legal storm if the unforeseen occurs.

CrossView Property Management would like to thank Dennis Heald for this article. Should you like a review of your insurance feel free to give him a call.

Dennis W. Heald, Agent

c: 904.705.1265

o: 904.992.8131 x205

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