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Asset Protection & Insurance: Is Your Leeds Rental Covered?

Filling Out Insurance Paperwork with a Model House in the Forefront

Unquestionably, Leeds property owners who rent out their properties need high-quality insurance to safeguard their real estate investments. However, there are lots of types of insurance, and each has different coverages and limits. This can make determining which insurance you need quite difficult. Among the options available are landlord or investor insurance, landlord liability, umbrella, and flood insurance. Understanding the functions served by each type of insurance can help you determine the best type and amount of coverage to use to protect the assets associated with your rental property since various types of insurance are made to protect various things. 

Landlord Insurance 

Landlord insurance is one of the most crucial types of insurance that owners of rental properties require. The protection of investment property is provided by landlord or investment property insurance, not by homeowner’s insurance. The rental home is covered by this insurance, as well as any exterior fixtures like fences or sheds. Most Leeds property managers require their tenants to buy their own renter’s insurance policy, as landlord insurance does not cover your tenant or your tenant’s personal property, and occasionally tenant liability insurance as well. 

Landlord Liability Insurance 

Landlord liability insurance is a different crucial type of insurance you should be aware of. Even though it is not the same as investment property insurance, landlord liability insurance is usually covered by the policy. This is because this kind of insurance pays for losses resulting from vandalism, theft, or damage committed by tenants or their visitors, as well as liability in the event of an injury. The purpose of landlord liability insurance is to safeguard both the financial aspects of your investment and your rental property. 

Umbrella Insurance 

An umbrella policy is exactly what it implies: broad protection for a rental property that offers an extra layer of safety for those who own real estate or work in a field that is subject to lawsuits. As a landlord, you fall under both of these categories, so you should consider getting an umbrella policy to protect your assets if you are sued for more than your other insurance policies will cover. Moreover, the insured is typically protected by these policies from losses in rent, harm from others, such as tenants, and damages to the property. 

Flood Insurance 

It’s important to remember that a flood usually won’t cause losses to your rental property, not even those covered by an umbrella policy. Flood insurance is typically provided as a separate policy that must be bought through the National Flood Insurance Program (NFIP) for a variety of reasons. Typically, this type of insurance covers the actual cash value (not the replacement cost) of the home’s physical structure and, if applicable, a detached garage. Even though lots of Leeds property owners assume they do not require flood insurance because their property is not located in a “high-risk” area, the truth is that floods can and do emerge wherever, and they commonly strike without warning. Floods regularly damage and demolish homes, whether they are caused by a burst pipe or an unusually large amount of rain. 

Given the numerous different types of insurance, it’s critical to check your coverage amounts meticulously to make sure you’re not paying for insurance you don’t need and that you have the right amount of coverage. However, establishing whether you have the proper insurance coverage can be difficult if you do not have industry experts on your team. Real Property Management Victory can assist you in choosing the appropriate insurance coverage to safeguard your valuable assets and financial stability. To learn more, contact us online or call us at 205-793-0700.                              

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