9 Tips Every Atlanta
Rental Property Investors Must Ask About Property Insurance
One of the most commonly looked-over aspects of investments in rental properties is insurance. Renters and property investors alike are often unclear on the appropriate insurance needs for both sides. To speak to the needs of renters, typical renters’ insurance is usually all that is necessary. For property owners, however, the list of insurance options available and necessary depends on each and every circumstance. In this article, an Atlanta property manager is going to discuss the questions you should be asking yourself and your insurance agent if you want to make sure you have the right insurance for your property.
1. What kind of pets does my insurance allow?
More and more rental property investors are learning that their insurances might not cover damages caused by specific breeds of animals. For instance, there is a list of aggressive dog breeds that many insurance carriers won’t cover. If you or your Atlanta property management company are leasing to a tenant with a dog, obtain the breed and check with your insurance company before signing a rental lease agreement.
2. Do I need liability insurance?
Yes. Your insurance company will offer a variety of liability insurance options, and while these might seem difficult to navigate, you should definitely carry some level of liability protection. Any accident that occurs on your property could put in you in the throes of a liability lawsuit. Ask your rental home property management company about where to look for liability insurance and they will recommend to you good insurance companies that are able to protect you and your assets.
3. If someone dies on my property due to an accident, will I be liable?
This depends on the incident. Liability insurance will cover you in the instance that someone dies due to an accident or even a gas or carbon monoxide leak.
4. Is homeowners insurance appropriate for rental property?
Many property investors are making payments on their properties, and so many of these people believe that homeowners insurance is enough to cover their rental liabilities. The truth is that you should have dwelling/hazard insurance to cover your property. Again, your Atlanta property manager will recommend you a great insurance company that specializes in commercial landlord insurance.
5. Are hazard and fire insurance necessary?
Yes, hazard and fire insurance should always be kept for rental properties.
6. My sewer backed up and affected a business down the street. Could I get in trouble for affecting their business?
Actually, the answer is yes. Carrying sewer backup insurance can cover any liability brought forth by such a backup.
7. My rental income is very important. Can I get insurance to protect me in the event of loss of income?
Yes, loss of income insurance is available. This can typically be added to your hazard and fire insurance.
8. What is umbrella insurance, and should I consider it?
Umbrella insurance is an optional liability insurance that will cover things outside of your liability insurance. While you might not ever have use for umbrella insurance, and it certainly isn’t necessary, it will generally cover you in the situation that liability insurance won’t.
9. My rental property is currently under construction. Are there any insurance considerations I should be aware of?
If your rental property is under construction, you might want to consider construction insurance otherwise called builder's risk insurance. This will protect you in the event any of your contractor’s tools are stolen from the property. Also, if you purchased a vacant property that is undergoing renovations, then you might consider builder’s risk insurance. While it’s costly, it will protect you from the damages caused by vandalism, accidents, and other incidents that can occur during renovations.
If you are lost, ask your Atlanta property manager for a name of a couple of good insurance agents
Marina Shlomov, a managing partner at ALH|Podland Realty & Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out at www.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube, Bigger Pockets and REI CLub and LinkedIn.