Protecting Your Property Investment.
Investment Property Insurance is in some ways very similar to personal property insurance.
Protecting your property investment is extremely important. By protecting your property investment you are not only protecting the money spent to invest or buy your property, but you are protecting future income from your investment property. (which is most likely why you invested in property in the first place).
This is why property investment insurance is fast becoming common for most property investors / owners.
Take for example, electrical malfunctions.
The property owner is required to do all that is necessary to ensure that a property is safe and secure. Having property investment insurance ensures that the costs of repairs to ensure a property is safe and secure are covered.
Some of the leading types of property investment insurance are:
Building Insurance policies generally cover the total or partial building loss as to an agreed upon dollar amount.
Coverage should be sufficient to cover any damage based on relevant estimates of current replacement costs.
If you choose to under-insure by taking out inadequate insurance coverage, you are in essence co-insuring the property. This means that you will be responsible for any amounts above and beyond the agreed insurance coverage costs.
Similar to liability insurance, landlords insurance generally covers the loss of income of an investment property.
Loss of income would be covered if your investment property is unfit for rental purposes due to damage issues caused by natural disasters or tenants. In regards to Tenant damage, landlord insurance by default covers damage caused by the tenant due to vandalism, theft or other malicious acts.
Best practice here, is to review your requirements with your commercial insurance broker, making sure you have a comprehensive analysis done on your specific property. Make sure you seek the advice of professionals.