Investment Property

As an Investment Property Owner, there are three primary things your Revenue Property Insurance policy should protect:

Property (Dwelling Coverage)

The most obvious coverage is for the structure itself. If something bad happens to your investment property its value is diminished. That could be a total loss like a fire or tornado leveling the structure. It could also be a partial loss like a burst pipe causing water damage to your wood floors. This is listed as DWELLING coverage on your insurance policy. It’s the most important property coverage.

Liability

This is coverage for bad things that happen to other people because of you or your property. Common examples are a person falling down the stairs, tripping on your sidewalk, or being injured by faulty construction. The renters living in your property are the most likely to experience these things. That’s why most rental contracts have “Hold Harmless” clauses. This is something you should talk to a lawyer about when creating your rental contract. The second group to potentially experience injuries on your property are the friends and family of your renters. This is the most important reason to REQUIRE TENANTS TO HAVE A RENTER’S POLICY. Liability on a renter’s policy would be first to respond and make you less likely to experience a liability claim.

Rental Income

The third major coverage protects the income that you receive from a property. If there is damage that requires a renter to move out for a period of time, you likely won’t receive rent payments. Rental Income coverage replaces that lost income.

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