property insurance

Owning real estate, whether it’s your home or for investment purposes is something that requires certain protections. You should always look for the right type of property insurance you need. The problem is, not many people realize how their coverage works and most people are just trying to save money, so, getting the bare minimum is where they keep it. It’s understandable to want to save money, but this mentality may cost you in the long run.

If there happens to be an accident, a lawsuit or a disaster, then you have big, costly trouble. If you don’t have the right property insurance, or if your property isn’t insured properly you may find yourself spending quite a bit more than had you procured the right type and amount of insurance in the first place.

Standard dwelling insurance policies

 These cover things like the building itself, property in the building, separate structures on the property, loss of use, and liability. Sometimes, there are riders you can add that will provide additional protections, but let’s take a look at these in particular.


 What most property owners don’t realize is, if you have a renter and an accident happens: you might get sued, too. Though insurance companies do send in lawyers to help with this, it’s only going to be as much as your policy allows. A personal umbrella policy is often the best way to protect yourself.

 Another type of liability insurance is Tenant Liability Insurance. This protects you in the event of a tenant who doesn’t have the right kind of insurance. Not only that, it also protects you from frivolous lawsuits, and other issues that you can encounter. It’s relatively inexpensive considering the protections it does provide.

Renter’s Insurance

 Though this isn’t something you would be purchasing, it’s a good idea to encourage your tenants to have it. It protects them from damages due to water and fire, it also protects them from theft and liability problems. It does offer you some protections, because if they have it, then those claims will go through their policy, before it goes through yours.

Physical assets protection

When you renew your policy, there are certain limits on the amount of protection you have if your physical assets are damaged or destroyed. If you take a look at your policy declarations, you’ll know how much that covers- or how little. If you do not have enough coverage in this area, though your buildings might be covered- anything else is not and will come out of your own pocket to repair or replace.

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Kurt Kroeck has written articles in real estate, law, and art related niches for a number of high profile publications. He is an avid WW2 re-enactor, artist in graphite, charcoal, and digital media. He volunteers in animal rescue and enjoys spending time with his children.




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