Finding the best property insurance for your real estate does not have to be difficult or impossible to obtain. Likewise, every landlord knows that investing in real estate can be incredibly rewarding. The best real estate investors take pride in managing their properties carefully and tending to tenants’ needs.
The Best Property Insurance Solutions
However, there are still many risks inherent to investing. In addition to the liability posed by tenants, investors must deal with the possibility of natural disasters, utility interruptions, and criminal activity on the premises. If you’re wondering how to know what the best property insurance is for you, consider the most common — and costly — liabilities that a landlord faces. Find out whether you need E&O insurance or any of the following policies.
Flood and Fire
Many real estate investors are surprised to hear statistics about floods and fires. Indeed, floods are both the most common and most expensive natural disaster in the U.S. Fires are a widespread occurrence — over 350,000 American homes experience a fire every year. Luckily, landlords can shield themselves from the cost of such disasters by investing in insurance that includes coverage for floods and fires. You will likely have to buy a flood insurance policy if you live in an area that suffers from flooding.
Premises Liability
Accidents happen, as the saying goes, but landlords shouldn’t have to pay for their tenants’ indiscretions. If a situation causes injury, theft, or medical bills, landlords may be subject to litigation in pursuit of damages. Even if such a suit is lost, it can cost an investor precious time and money. Thus, hiring legal representation is a substantial expense that can have significant repercussions. A premises liability policy or E&O insurance can protect landlords from the liability associated with on-site accidents.
Income Loss Coverage
The income earned from real estate investments can be great, but it isn’t always consistent. Vacancies, tenants in default, and other issues can cause a landlord’s revenue to be interrupted. Loss of income insurance offers defense against significant fluctuations in income. This type of landlord policy shields against losses stemming from a natural disaster or other events that make a property uninhabitable. Additionally, you can complement this policy with a rent default policy to secure additional protection against losses from tenants’ failure to pay rent.
Water Line Backup
Issues with a property’s sewage connection can be disastrous. If there is a water line backup or a break in the main plumbing line, you will likely be responsible for repairing it. This policy varies based on your property’s area. However, property owners are likely liable for sewage issues within their property lines. You should anticipate this liability by finding out what property insurance fits your needs and ensuring it covers sewage issues.
Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.
