The Compass Property Management Group strongly encourages owners to insure properties wisely!
Insurance is the single most important purchase owners can make for their property. Knowing the difference between standard property insurance and investor insurance is a must to protect your property, potentially saving you thousands.
Most homes are covered by homeowner's policies. But these policies will not cover a property unless you live in it. Make sure you switch to a dwelling policy which covers rentals. This type of policy may also cover lost rent during renovation processes.
Medical Expense Coverage:
Some policies provide immediate medical coverage for injuries that happen on your property, whether you are liable or not.
Landlord Liability Protection:
Coverage of at least $300,000 to $500,000 is needed to not only cover actual damages, but also legal fees. Make sure your policy covers everything needed.
100% Replacement Cost:
You want the funds to completely rebuild your property in the event of a catastrophic event causing a total loss. Speak to your insurer about the recommended amount needed to cover this vital need.
Water and Steam damage:
Make sure your policy covers plumbing issues such as water heater bursts, pipe bursts, and other plumbing disasters that can cost hundreds, or even thousands.
Commercial Umbrella Liability Policy:
Get additional insurance, on top of your liability policy, to provide extra security against legal and financial accidents that can create havoc on your budget.
Make sure you add your property management company as an additionally insured. Reputable insurance companies usually provide this at no additional cost. In many states, it's the law.
Most dwelling policies lapse coverage if a property is left vacant for 60 days or longer. Make sure your policy allows a quick switch to a vacant home policy to cover it during vacancies.