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Investor Insight, Annapolis Property Management, Annapolis Property Manager

Renters Warehouse BW Metro | June 3, 2021

What Kind of Insurance Coverage Do Annapolis Property Investors Need?

When you become Annapolis rental property owner, there will be many considerations for you to make. Is your rental property covered? You never know when something could go wrong and leads to an expensive loss. If you haven't thought about it before, it's time to consider the insurance you need to protect your investments.

Much like owning your home, real estate investments need insurance coverage. However, it's not quite the same as insuring your private residence. Investors must protect themselves against bad renters and potential property damage. What kind of coverage do you need? Our Rent Estate™ Advisors have expert Annapolis property management insights to help you decide which type of insurance coverage you should get. Keep reading to learn more!

Insurance agent with house toy, safety insurance concept

Rental Property Owners Insurance

Property investor insurance is the coverage you need as a rental property owner when providing housing to renters. While the right Annapolis property management helps real estate investors manage residents and maintain properties, most types of homeowners insurance coverages will not protect you or your income if things go wrong in your rentals. 

Homeowners insurance is ideal for a private residence that doesn't operate as a rental property business. Smart investors know they can't rely on a homeowner's policy when using a residence as a rental property. Work with a property manager to help identify the property coverage you need to minimize risks to your rentals and income!

Landlord Liability Insurance

Landlord Liability Insurance is a common type of coverage you will find in most landlord insurance policies. It is a type of insurance that helps property owners recover costs in case someone is injured in their property. It will also pay for any damages to the renter's property if you are required to pay for it. 

Landlord liability insurance can also help minimize your financial loss If you are found guilty of property maintenance negligence or failing to protect renters from safety risks on your property. This coverage can also cover your defense fees and any other costs associated with the legal process.

Rental Loss Insurance

Another form of insurance coverage that every property investor should have is rent guarantee insurance. It is also referred to as loss of income insurance.

If your property becomes uninhabitable due to unexpected damage or other unforeseen issues, rent loss insurance helps investors minimize income loss while the property is under repair. It's a critical way to protect your cash flow while renters are unable to live in your property and pay the rent. 

Different rent loss policies cover various aspects of unexpected income loss, including when renters default on their monthly payments. However, not all rent guarantee coverage is the same. Read your policy carefully and work with a property manager in Annapolis to make sure your coverage provides the protection you need!

Other Types of Rental Property Insurance

Flood Insurance

Many property investors do not consider flood insurance to be a vital policy. If your rental isn't in a flood zone, do you really need flood insurance? 

In a world that is often full of surprises, flooding can happen during storms, as a result of broken pipes, and outside of designated "flood zones." A flood in your property can also occur due to human error during maintenance or if a renter clogs a drain. Flood insurance helps Annapolis investors recover costs from most types of flooding and the damage that water causes to your property. 

Workers Compensation Insurance

Owning a rental property requires a team of experts to keep it in excellent condition and serve renters well! If you don't have a property manager, you'll need to employ maintenance workers, a cleaning crew, or other help to manage rentals, it's important to consider workers' compensation insurance. 

If any of these workers get injured on your property, you could be liable for the damage. The medical and legal costs of an employee getting injured on your property can be quite significant. Workers' compensation insurance helps care for injured workers while protecting your income and liability responsibility. 

The best way to avoid worker liabilities is to partner with a property manager to handle every property-related task for you! Let a property manager province the staffing and resources you need to handle maintenance and more. 

Agent with house model and keys-1

Protect Your Property With Insurance and a Property Manager

Insurance is an important tool to protect any type of investment, but it is especially valuable for property owners. Because no one can predict when an act of nature will strike or what tenants will do in your properties, an Annapolis property management company and the right insurance coverage can help you mitigate liabilities and minimize risk to your cash flow and long-term income goals! 

Our Renters Warehouse BW Metro Rent Estate™ Advisors are standing by to help you learn more about protecting your real estate investments and maximizing your returns! If you're ready to learn more, let's talk.

Learn more about protecting your properties with our free resource! Download "Protecting Your Investment Property: A Guide."

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