Protecting your investment properties begins with understanding available coverage forms and which one best suits your needs. Learn about Basic and Special forms in the video below!
Transcript:
Protecting your investment properties begins with understanding the coverage forms available to you and which best suits each of your location’s needs.
National Real Estate Insurance Group offers property insurance in two forms: Basic & Special.
Basic Form Coverage is a Named Peril policy. Meaning, for a loss to be covered, the peril must be listed by name on the declarations page. Basic Form is typically the cheapest option, however, it’s important to note that these policies exclude coverage for:
- Collapse
- Falling Objects
- Theft
- Weight of Ice, Sleet, or Snow
- Water Damage- most known as coverage for frozen and burst pipes
Special Form is an All-Risk coverage. Meaning anything that is not specifically excluded from the policy is covered. While Special Form is the most comprehensive coverage option available, these policies also contain standard exclusions, such as:
- Mold & Fungus
- Wear & Tear
- Sewer & Drain Backup
- Earth Movement
- Flood
- Intentional Tenant Damage
Some of these excluded perils can be covered through endorsements or standalone policies.
While cost is often a key consideration, it’s equally important to evaluate the unique risks associated with your property’s location and occupancy status.
Contact NREIG today for a comprehensive policy and coverage comparison.
