Everybody knows that Culver City rental property owners must have good quality insurance to protect their real estate investments. Except there are several different kinds of insurance, each respectively has its own coverages and limits. That can make distinguishing which insurance you need quite a difficulty. Landlord or Investor insurance, landlord liability, umbrella, and flood insurance are just a few examples of what’s out there because different types of insurance are designed to protect different things, understanding what purpose each serves can help you work out how to best protect your rental property assets with the correct type and amount of coverage.
Unlike homeowner’s insurance, Landlord or Investment Property Insurance is intended to safeguard investment property. This type of insurance covers the rental home and usually exterior features, such as sheds or fences. Landlord insurance does not cover your tenant or your tenant’s personal property, which is why most landlords ask that their tenants purchase their own renter’s insurance policy and sometimes tenant liability insurance too.
Landlord Liability insurance is different from Investment Property Insurance but is often included. This is because this type of insurance covers losses related to damage, theft, or vandalism caused by tenants or their guests; it also covers liability in the event of an injury. This type of insurance is meant not only to protect your rental home but also the financial aspects of your investment as well.
An umbrella policy is just what it sounds like: broad coverage for a rental property that adds an extra layer of protection for individuals who own property or have an occupation that is prone to lawsuits. Since being a landlord fits both of these classes, it is worth checking out an umbrella policy to protect your assets if you are sued for damages in excess of your other insurance policies. These policies also typically protect the insured against loss of rent or damages to other people’s property or injury caused by others, such as a tenant.
It is worth noting, still, that even an umbrella policy usually does not cover losses to your rental property due to a flood. For several causes, flood insurance is usually offered as a separate policy that must be purchased through the National Flood Insurance Program (NFIP). This type of insurance typically covers the actual cash value (not the replacement cost) of the physical structure of the home and a detached garage, if any. Although multiple Culver City property owners believe that they don’t need flood insurance because their property is not located in a “high-risk” area, the truth is that floods can and do happen anywhere, and usually strike without warning. Whether from a burst pipe or an unusual amount of rain, floods damage and destroy homes on a regular basis.
With so many different types of insurance, it’s crucial to examine your coverage amounts prudently and be certain that you are not paying for insurance you don’t need, then again, also that the insurance you do have provides the right amount of coverage. Still, recognizing whether you have the right insurance coverage can be quite mind-boggling except if you have reliable industry experts on your team. At Real Property Management Choice, we can help you determine how to best protect your valuable properties and your financial well-being with the right insurance coverage. To learn more, contact us or call us at 310-928-9728 for more information.
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