Although property insurance and homeowners policies share similarities, the insurance needed for an investment property can be very different from what is required for an owner-occupied home. Learn more about what property insurance covers and why it’s a better option for investors in the video below.
Transcript:
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. While the types of covered perils vary based on your coverage form, most policies include coverage for perils such as Fire, Explosion, Windstorms and Hail, Smoke, and Vandalism.
It’s important to remember that property insurance is NOT a maintenance plan to help pay for upkeep or general wear and tear. Property coverage is for physical damage, caused by sudden and unforeseen incidents.
Now, you may be thinking, “property insurance sounds a lot like a homeowners policy.” And while they do share similarities, the insurance needed for an investment property can be much different than what is required for an owner-occupied home. In fact, many homeowners policies exclude coverage for properties used as business ventures. Therefore, it is very important that your insurance agent AND carrier know the home is an investment property. Otherwise, your insurance carrier may have the right to deny a claim when a loss occurs.
Regardless of a property’s occupancy status, 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 monthly schedule and bill.
