Insurance Coverage for Investment Properties

Posted By: Team Moody,

Insurance coverage is a topic that is often and mistakenly overlooked for investment properties. Do you own an investment property? Did you know that in the event of property loss or a liability lawsuit without proper insurance coverage, you could greatly jeopardize your finances? Speak with a worldwide insurance agent to discuss your particular situation. Every property has different risks, and therefore every investment property insurance coverage should differ.

Investment Property Insurance Types

Some common types of insurance for investment properties include:

  • Hazard and Fire Insurance
  • Liability Insurance
  • Sewer Backup Insurance
  • Flood Insurance
  • Vacant Property Insurance
  • Rental Income Insurance
  • Umbrella Insurance Policy

Top Coverages for Investment Properties

It is in your best interest to be equipped with tailored coverage for your investment property. An investment property should be protected with property coverage to respond in the event of property damage to your premises and its contents. This includes damage by tenants, fire, storms and other events, whether it be by a natural occurrence or a manmade one. Detached garages, sheds, guesthouses, pools, etc., can also be insured under the policy. Let’s review a few of the top coverages:

Vacant Property

When a tenant moves out, there is commonly a waiting period prior to another tenant moving in. Throughout this time frame, the property sits vacant. Without any occupancy or check-ins, there are many hazards that can go unnoticed or the property can become a target for other unfortunate activities, such as theft. Your Investment Property insurance policy can be customized to provide coverage for intervals when the home is unoccupied.

Rental Income

This is another major benefit of investment property insurance coverage to protect you if your income was to come to a halt due to a cause of loss, such as fire or storm, which makes the home unlivable. Loss of income coverage guarantees financial stability if tenants were forced to move out, even if their mandated vacating was for a brief period.

Liability

The Liability insurance component under the policy will cover legal fees, settlements and damage awards in claims where you are found responsible for another party’s loss.

Personal Umbrella Liability insurance is also available to extend your Liability protection beyond your primary policy, which can be especially beneficial in today’s litigious environment. Speak to a worldwide insurance agent at Moody Insurance to begin protecting your investment property.

Moody Insurance Can Help with Investment Property Insurance

Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.