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Do You Have the Right Landlord Insurance?

Round Rock Landlord Insurance PaperworkFor numerous property owners in Round Rock, the expenses that come with landlord insurance can often feel like a big deal. So many have felt that they are overpaying for even a basic landlord insurance policy. Nonetheless, if you are a rental property investor with only basic coverage, you may not have enough insurance to protect yourself and your property from disaster. For landlords in Round Rock, it is relatively crucial to have insurance that covers more than just your rental house. Getting coverage for lost rent, full liability, and surprise special assessments can help ensure that you have the right insurance for your situation.

Majority of investors realize the importance of maintaining insurance coverage to protect their investment in the occurrence of a significant loss. Storm damage, fire, and other events can result in extensive repairs and make the property uninhabitable for a period. With a basic landlord insurance policy, there is nothing you can do to protect yourself from the lost rent. This is where fair rental income protection comes into play.

Normally called fair rental value coverage, this kind of insurance could help restore lost rent payments if your rental property is temporarily uninhabitable following a covered claim. There are landlord insurance policies that consist of this type of coverage, but others do not. If yours does not, and lost rent is a concern for you, then it is important to consider adding fair rental income protection to your base policy.

A comprehensive landlord insurance policy will protect you from the expense of property damage and other specific sorts of liability. Many landlord insurance policies include coverage for medical or legal costs if a tenant or guest is injured as a result of the property’s condition. However, for some property investors, more potential liabilities require more coverage. In such circumstances, additional liability coverage could be a perfect choice. For example, if a tenant experienced a break-in while renting one of your properties or engages in illegal behavior and you forgot or refused to take immediate action to address the issue, you could be held liable for amounts beyond what a basic landlord policy will cover.

In addition to lost rent and liability, you may want to look at special assessment coverage. A special assessment is a fee imposed by an owner’s association on community association property owners. These special assessments can be added to existing association fees for a variety of reasons, including necessary repairs or improvement projects in the building or neighborhood. To avoid the unwelcome surprise of a large special assessment, property owners can purchase special assessment insurance, sometimes called title insurance. This type of insurance protects your property from special assessments that were not included in the original purchase documents. If your rental properties are subject to homeowner’s association fees, this is one type of insurance that property investors should seriously consider.

To protect all your assets, it is essential to seek counsel with an insurance expert to get the coverage you need. Additionally, as your investment portfolio changes, so too should your insurance coverage. It is critical to examine your insurance coverage annually and make the adjustments necessary to keep you and your Round Rock rental properties fully protected.

Luckily, Real Property Management Advisors can help. We guide property owners in figuring out which insurance policies and coverage you need for every situation. We can connect you with insurance professionals who offer quality insurance policies at the most competitive rates. With industry authorities on your side, you are guaranteed that you have the right landlord insurance for a long and profitable rental property investing career. Contact us online or call us at 512-777-2597 for more information.

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