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Do You Have the Right Landlord Insurance?

Santa Clara Landlord Insurance PaperworkFor a lot of property owners in Santa Clara, the amount that is being spent to get landlord insurance can feel like a weight on their shoulders. In reality, so many think that they are overpaying for even a basic landlord insurance policy. But then again, if you are a rental property investor with only basic coverage, you may not have enough insurance to protect yourself and your property from disaster. For landlords in Santa Clara, it is significant to have insurance that includes more than just your rental house. Getting coverage for lost rent, full liability, and surprise special assessments can help ensure that you have the right insurance for your situation.

Multiple investors appreciate the value of having insurance coverage to protect their investment in the event of a significant loss. Storm damage, fire, and other events can result in extensive repairs and make the property uninhabitable for a period. With a basic landlord insurance policy, there is nothing you can do to protect yourself from the lost rent. This is where fair rental income protection comes into play.

Often called fair rental value coverage, this category of insurance may help recoup lost rent payments if your rental property is temporarily uninhabitable following a covered claim. Some landlord insurance policies consist of this type of coverage, but many do not. If yours does not, and lost rent is a concern for you, then it is important to investigate adding fair rental income protection to your base policy.

A comprehensive landlord insurance policy will protect you from the cost of property damage and specific types of liability. Many landlord insurance policies include coverage for medical or legal costs if a tenant or guest is injured as a result of the property’s condition. For some property investors, there are so many potential liabilities that require more coverage. In such incidents, additional liability coverage may be the appropriate way to go. For instance, if a tenant experienced a break-in while renting one of your properties or engages in illegal behavior and you do not take immediate action to address the issue, you could be held liable for amounts beyond what a basic landlord policy will cover.

On top of lost rent and liability, you may want to look at special assessment coverage. A special assessment is a payment required by an owner’s association on community association property owners. These special assessments can be added to prevailing association fees for a whole lot of reasons, including necessary repairs or improvement projects in the building or neighborhood. To avoid the unwelcome surprise of a large special assessment, property owners can purchase special assessment insurance, sometimes called title insurance. This sort of insurance protects your property from special assessments that were not included in the original purchase documents. If your rental properties are subject to homeowner’s association fees, this is one type of insurance that property investors should seriously consider.

To protect all your assets, it is important to check with an insurance expert to contract the coverage you need. In addition, as your investment portfolio changes, so must your insurance coverage. It is essential to review your insurance coverage annually and make the adjustments necessary to keep you and your Santa Clara rental properties fully protected.

The good news is that Real Property Management Southern Utah can help. We assist property owners with determining which insurance policies and coverage you need for your situation. We can connect you with insurance professionals who offer quality insurance policies at the most competitive rates. With industry experts on your side, you can be confident that you have the right landlord insurance for a long and profitable rental property investing career. Contact us online or call us at 435-673-4242 for more information.

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