Skip to Content

Do You Have the Right Landlord Insurance?

Paper reading “landlord insurance” resting on a desk.For many property owners, the cost of landlord insurance can be perceived as a financial challenge. Indeed, some individuals may feel that they are overpaying for even a basic landlord insurance policy. However, for rental property investors with only basic coverage, it might be necessary to consider additional insurance to protect yourself and your property from unforeseen events.

Landlords in Minneapolis should consider acquiring insurance that covers more than just your rental house. Comprehensive coverage for lost rent, full liability, and surprise special assessments can guarantee that you have the right insurance for your situation. It is important to have the right insurance for your situation so you can have peace of mind.

Incidents may require significant repairs

Many investors understand the value of getting insurance coverage to protect their investments in case of significant damages. Storm damage, fire, and other events can lead to extensive repairs and make the property uninhabitable. With a basic landlord insurance policy, you can do nothing to safeguard yourself from the lost rent. This is where the importance of fair rental income protection becomes evident.

Protect your cash flow

Sometimes also known as fair rental value coverage, this type of insurance may help replace lost rent payments if your rental property is temporarily uninhabitable owing to a covered claim. Some landlord insurance policies provide this sort of coverage, while others may not. If yours does not, and lost rent is a concern for you, it is important to investigate adding fair rental income protection to your base policy. This additional coverage can offer you peace of mind, ensuring that your income is protected even in unexpected situations.

Additional liability coverage

A comprehensive landlord insurance policy will protect you from the cost of property damage and certain types of obligations. Several landlord insurance policies offer coverage for medical or legal fees if a tenant or guest is injured due to the property’s condition. However, for certain property investors, additional coverage may be necessary to address other potential liabilities. In such situations, additional liability coverage may be a wise decision. For instance, if a tenant experiences a break-in while renting one of your properties or works in illegal activity and you do not take immediate action to address the issue, you may be held responsible for expenses that exceed the coverage provided by a basic landlord policy.

Special Assessment Coverage

Along with lost rent and liability, it is critical to consider special assessment coverage. A special assessment is a fee implemented by an owner’s association on community association property owners. These special assessments may be included in existing association fees for numerous reasons, such as vital maintenance or improvement projects in the building or neighborhood. Property owners can purchase special assessment insurance, often referred to as title insurance, to avert the unwelcome surprise of a large special assessment. This insurance protects your property from special assessments not written in the original purchase documents. If your rental properties are subject to homeowner’s association fees, this is one type of insurance that property investors should seriously consider.

Talk to a professional

To protect all your assets, you should consult with an insurance expert to get the necessary coverage. Additionally, as your investment portfolio changes, so should your insurance coverage. It is not just important but empowering to review your insurance coverage annually and make the appropriate modifications to keep you and your Minneapolis rental properties fully protected. This method guarantees that you have complete control over your insurance needs.

Real Property Management Viking assists Minneapolis property owners with identifying which insurance policies and coverage they need. We can connect you with professionals offering quality insurance policies at the most competitive rates. With industry experts on your side, you can be certain that you have the right landlord insurance for a long and profitable rental property investing career. Contact us online or at 612-230-3953 for more information.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details