‘Twas The Night Before Christmas…

And all through the investment property house 

Something was definitely stirring, and it sure was no mouse.  Probably a burglar.  Or a backed up sewer line.  Maybe ‘twas a short in the old electrical wiring in the wall.  Whatever it was – it’s certainly gonna cost you.  Damage done to your investment property from unexpected events is something  all good property investors must take into account when acquiring any new property.  Sound property investing advice tells us to properly plan for the unexpected.  That’s where property investment insurance comes in – and it’s so integrally important to have whenever acquiring a new investment.  But, it needs to be the right kind of insurance protection.

Finding the right insurance for your needs

Selecting the right property investment insurance starts with having an excellent, trusted property investment insurance agent as part of your overall crew of experts on your property investing team of professionals.  As mentioned in prior articles here, your crew has to be selected well before you even begin searching for new properties to acquire.  Once you find a suitable property to invest in, make an offer, negotiate, then are able to close on it, you’ll need to trust your insurance agent with helping you select the best insurance for that particular property.

A good property investment insurance agent will factor in the condition of the property, and where it’s physically located (for example, is it in a flood zone or not; or, is it prone to other natural disasters that could harm it?).  In addition, they will take into account tenant’s being foolish, and starting accidental kitchen fires, or slipping and falling on ice on a walkway, and then suing you.  Having the right amount of coverage is essential:  too much means you’re overpaying for your insurance, whereas too little leaves you with a personal exposure that could ruin you.  Of course, any good property investment insurance agent will recommend personal liability insurance as well as property insurance.  This personal liability insurance is an absolute necessity when dealing with tenants in such a litigious society as ours.

Choose wisely

Make sure you shop around for insurance agents, and go over with them how they would handle various negative occurrences that might befall any investment property.  Remember, you need an agent that understands very well that insurance for a business like property investing is far different than standard homeowner’s insurance.  And they need to protect you at all costs, at the best price.  So make sure you take the time to shop around for a property investment insurance agent you trust to place amongst your crew of valued professionals, before you begin searching for your next property.

 

photos courtesy of  homeschoolcommons.com,  773hotcold.com, debtoutof.com, giulioruffini.ifunnyblog.com