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Sales, rentals and property management

Property Insurance

Property Owners have to know the importance of insuring their real estate property.

There is no way round this; property insurance is a safety net against damage caused by Mother Nature and your tenants. In general, property owner insurance covers the property and the structure itself. What is not covered are the belongings of a tenant. For that, tenants are encouraged to buy renter’s insurance. 

Insurance coverage comes in many shapes and sizes, so talk with your attorney and local insurance agent to design a policy to best protect your property. Liability insurance is one type that all property owners should consider to protect themselves against tenant negligence and possible lawsuits. Listed below are the four standard types of coverage that property owners choose from.

  1. Property and Casualty Insurance
    In its most basic form, property and casualty insurance coverage will provide you with protection against damage to the property from events as diverse as civil commotion, glass breakage and vandalism to lighting, fire, smoke or damage resulting from a car running into your building. This policy can also provide protection against a lost income due to inhabitation.  Hurricane and storm protection is often separate. 
  2. General Liability Insurance
    General liability insurance coverage insures you against claims by third parties (e.g., tenants or visitors) for negligence or damage caused to the possessions of a tenant or visitor to your property, injury to someone on the premises or damage or harm to a third-party who may be working on your property. This policy can also provide protection against situations such as a tenant or visitor falling on a slippery stair a faulty handrail. 
  3. Flood and/or Water Damage Insurance
    Having flood and water damage insurance coverage protects against any sort of water damage except for a sewer back up. Such insurance takes in a substantial assortment of variables: accidental damage because of malfunctioning plumbing, heating, refrigeration or air-conditioning systems, as well as water damage caused by nature, such as rain or snow. Normally, this sort of coverage is in addition or an endorsement to a basic property insurance policy. 
  4. Umbrella Liability Insurance
    Umbrella liability insurance coverage goes beyond that which a basic liability insurance policy provides and comes into effect after the basic policy has paid the maximum allowed. This is insurance against an unexpected, even catastrophic losses.

"There are two types of people who will tell you that you cannot make a difference in this world: those who are afraid to try and those who are afraid you will succeed." --Ray Goforth