Understanding Property Insurance for Investment Properties
Property insurance for investment properties differs from homeowners policies in many ways. To learn more about what property insurance covers and why it is a better option for investors, watch the informative video below.
Transcript:
Coverage and Protection
Whether your investment property is tenant-occupied, vacant, or under construction, property insurance provides coverage and financial protection against a wide range of risks and perils.
A peril is an unexpected event that causes damage or loss to a property. Most property insurance policies include coverage for perils such as Fire, Explosion, Windstorms, Hail, Smoke, and Vandalism.
Important Distinctions
It’s crucial to understand that property insurance is not a maintenance plan for upkeep or wear and tear. It is designed to cover physical damage caused by sudden and unforeseen incidents.
While property insurance shares similarities with homeowners policies, the coverage needed for an investment property can be significantly different. Homeowners policies often exclude coverage for properties used for business ventures. Therefore, it is essential for your insurance agent and carrier to be aware that the home is an investment property to avoid claim denials in case of a loss.
Securing Your Investment
Regardless of the occupancy status of a property, having the right insurance policy in place is essential for protecting your investment and securing your financial future. National Real Estate Insurance Group offers property coverage for all phases of occupancy on one convenient monthly schedule and bill.