Looking Inside Your Insurance Policy – What Coverage You Really Have

As property owners, it is essential to protect your investment with the right insurance policy. In doing so, it is important to find a balance between quality insurance and necessary insurance. Purchasing insurance that your property doesn’t necessarily need can diminish potential returns due to its higher operating expenses. On the flip side, if you don’t have the right coverage, it can leave areas lacking in case of emergency and may lead to denial of your insurance claim. Knowing the ins and outs of your property’s coverage is key to property ownership. Here are common types of insurance for property owners and how it may impact your investment:

Hazard and Fire: This coverage offers protection against different types of fire and weather-induced damage. Whether that’s ice, snow, storms, lightning, water, or smoke damage, the policy should cover all of these potential catastrophes.  

Flood: Although hazard policies cover water damage, most do not account for flooding. Especially if your property is in a designated flood zone, it is essential to invest in flood coverage to protect your property. 

Water & Sewer Backup: In most areas, property owners are responsible for maintaining any part of a sewer line that runs through their property. Water and sewer backup insurance covers backup sewers to prevent the property from being unhabitable for an extended time period. 

Loss of Income: Loss of income insurance protects your property from becoming unhabitable for an extended time. Since many property owners rely on rental income, this gives an avenue to keep a steady income if there is an unexpected occurrence. 

Liability: If a resident, a resident’s guest, or a maintenance worker gets injured under your roof, you could be liable for a large sum regarding all sorts of issues, from medical costs to missed work compensation. Liability insurance protects you from the legal action that these parties can take against you. Even if you are found liable, the insurance company will cover the payout and any other necessary legal expenses, as long as your liability limit is optimal. 

Rent Guarantee: In addition to the loss of income insurance, rent guarantee coverage provides compensation if a resident doesn’t pay their dues. This ensures there are no gaps between payments and keeps your income steady from month to month.

At Deca Property Management, we recognize that each property and owner is different, and there is no one-coverage-fits-all. We urge you to analyze your insurance policy and evaluate what your property truly needs. Not only will this save money and protect your property, but it will also attract quality residents in the future knowing they are also protected.