As a property investor, you have a lot at stake, and you don’t want to take any chances with your money on the line. You’ve put too much into your property to allow it to be easily taken away. Whether it’s to protect against physical losses or lawsuits, it’s of utmost importance that you have the right amount of investment property insurance. Below are two of the key coverages that you should plan to include in your policy.
There are various forms of liability insurance, but in general, their purpose is to protect you in case a tenant or other third party files a lawsuit against you. This can be due to them getting injured on your premises or a tenant claiming that you didn’t hold up your end of a contract.
You never know when disaster’s going strike and property insurance helps to protect you in such situations. You can cover your building, landscaping, and furniture. Whether it’s an external or internal incident, your policy will cover the cost to replace or repair your items.
Other coverages you’ll want to carry include sewer backup insurance, flood insurance, loss of income insurance and builder’s risk insurance. Of course, there are many other options available depending on your needs. Work with an experienced agent to build a policy that aligns with your property’s intended uses and location.