Investing in real estate property is one of the best things that you can do for your long-term wealth. Real estate regularly outpaces the stock market for gains and allows the creation of cash flow while leveraging your money very effectively. But being a landlord is also a risk in and of itself and needs to be taken seriously. You should have lots of insurance coverage if you are a landlord to avoid running into any issues down the line. Here are three situations in which having solid insurance coverage could come in handy as a landlord.
Property Damage
The first time when having solid insurance coverage could come in handy as a landlord is if your property takes on any sort of physical damage. Whether you have bad tenants who trash your property, or your property ends up succumbing to damage another way, without homeowners or landlord insurance you could be left footing the bill. You should have homeowners protection that protects you against property damage so that should something happen you are covered. Property damage is more common than you think, but the right insurance policy can make sure that you aren’t financially hindered by unintended property problems.
Being Sued
Another time when having solid insurance coverage could come in handy as a landlord is when you are being sued. It is all too common for landlords to be sued by tenants and previous tenants for all sorts of reasons. You need adequate coverage to protect your real estate investment in the event that you find yourself on the wrong end of a lawsuit. While the problem may not actually be your fault or responsibility, having insurance can keep you safe from the damage, and help make it less of a burden on you financially.
If A Tenant Gets Injured
Another time when having solid insurance coverage could and will come in handy as a landlord is if a tenant gets injured on or because of your property. As the owner of a property, you are responsible if your negligence leads to the injury of a tenant. Having liability insurance as a part of your landlord insurance is critical to keeping yourself safe in this situation from financial hardship.
Having insurance when you own property is non-negotiable. But when you are a landlord, insurance is even more important. If you’re not sure that your insurance policies are enough to protect you, contact one of our licensed agents to review your policies today.
Check out this article on the most common questions about umbrella insurance!
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
