Taking on any investment is a risk. Purchasing insurance for stock investments isn't as simple as buying insurance for other endeavors, such as real estate.
Bradenton, FL, real estate investors can benefit from landlord insurance. To protect your assets, you need to know about the must-have policies. Read this guide on rental leasing for some of the top insurance protections for landlords.
Property Insurance
The most common type of insurance regarding rental leasing is property insurance. Property insurance is basic for any insurance policy for landlords. This insurance can benefit owners in these situations:
- Fire
- Lightning
- Wind
Flood and windstorm insurance might not be covered in a property insurance policy. Florida is a hotspot for flooding, so it's important to have this coverage.
It's recommended to get a separate policy for flood insurance and windstorm insurance if your basic policy doesn't cover these situations.
These policies can benefit Florida property owners, specifically those in flood zones. Talk to an insurance provider to decide what an adequate property insurance policy covers.
Liability Insurance
A landlord insurance policy should include liability coverage. This is standard in most policies for landlords, but it's always important to double-check it's included.
This type of insurance policy is necessary as it can cover property damage or bodily injury that occurs on your Bradenton, FL property.
For example, you might have a bad tenant who injures another resident. Your liability insurance will cover the accident.
It's important to conduct background checks on all rental property applicants to prevent problems like this from happening.
Rental Loss Insurance
If a rental unit becomes uninhabitable, a tenant cannot keep living there. Without rental loss insurance, landlords lose out on the rental income they would have made during this time.
During the repair period, a tenant has to move out and won't keep paying rent. Loss of income coverage ensures you still receive your rental income while repairs are made.
Loss of rental income insurance only covers certain crises. The coverage lasts up to one year or until a tenant moves back in after the repairs are complete.
Vandalism and Theft Insurance
Your rental property may have a vacancy or multiple vacancies at certain points. While the property is vacant, criminals may try to vandalize or steal something from your units. Even worse, they could become squatters.
While this coverage won't protect you from squatters, it may help deter people away from a vacancy.
Landlords are covered from instances of theft or vandalism that occur from outside criminals or other renters on the property.
Rental Leasing Made Easier With Insurance
Rental leasing is a risk owners are willing to take to make passive income. To mitigate your risk, invest in these types of insurance policies.
Not sure what insurance policies are right for you? A professional and experienced property manager can help you out.
Gulf Coast Property Management has been managing properties in Florida since 2003. We've helped owners just like you navigate the complexities of real estate.
Our comprehensive services and knowledge of the local area allow us to stand out from the rest. Contact us today to unlock the full potential of your investment.
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