Purchasing insurance is one of the first steps to property management in Park City, Utah. Unfortunately, in the midst of drawing up leases, interviewing property managers, and finding tenants, some landlords leave their old homeowners insurance the way it was, or just purchase the bare minimum in landlord insurance when they really need more coverage. These tips will help you learn why having landlord insurance is necessary and decide just how much coverage you need.
Never Expect Homeowners Insurance to Do the Trick
If you have to file a claim and your insurance company discovers that you were renting out a property with homeowners insurance, they can deny your claim. You may have saved a little money by paying for homeowners insurance when you needed a landlord policy, but it probably wouldn’t have been enough to cover the damage you were filing for.
Loss of Income Protection isn’t Always a Great Idea
Although loss of income protection at first sounds like a must-have, as it can keep your rental income flowing even when there is no tenant on the property, it has its restrictions. There usually has to be some sort of repair work being done on the property that makes it uninhabitable for your loss of income claim to go through. See how much extra it will cost before you decide to purchase a policy that is very difficult to take advantage of, especially if you have several income-producing properties.
You May Want Personal Property Protection Even if the Property is Unfurnished
Personal property protection covers everything inside the building that belongs to you. This can include lighting, appliances, carpeting, curtains, and just about anything else that you leave for your renters. Obviously normal wear and tear won’t be covered, but if a flood sweeps through the house, a personal property protection policy will reimburse you for the replacement costs of anything that may have been inside.
Check for a Flood or Natural Disaster Policy
Speaking of floods, not all insurances include flood and natural disaster coverage; you may have to add that onto your policy for an additional cost. When shopping for landlord insurance, don’t take it as a given that your property will be covered in the event of a natural disaster. Verify the extent of your natural disaster policy, too; will you be covered if a tree falls on the house?
Choose Your Property Manager Wisely
When you hire someone else to take care of your property management in Park City, Utah, your manager will be acting in your name. This means that if the manager or property management company messes up, you will be liable. Look for a quality property management company like Property Alliance to keep the chances of ever needing to file a claim low.
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