If you own investment property in Ohio, we need to talk. Not the small talk tossed around happy-hour gatherings or family reunions, but the very real talk of sufficient investment property insurance. Whether you “flip” houses or own apartment buildings, multi-unit residential properties, or one single-family home for rent, investment property insurance helps protect your investment and you.
For ease of explanation, think of investment property insurance as sort of a hybrid homeowner’s and business owner’s insurance. Regardless of the size of your investment property, you have a financial interest in a physical asset(s) that is residential in nature and from which you derive income. When you purchase investment property insurance, you need to consider each of the highlighted coverages carefully:
Property Insurance:
Whether or not you have a mortgage on the investment property, sufficient property insurance coverage is a practical necessity. Stuff happens, such as accidental fires. Even a stellar tenant could distractedly leave a frying pan on the stove to attend to a child, resulting in a whole house or building fire within minutes. Wild weather, something with which Northeast Ohioans are especially familiar, can result in significant wind and hail damage. Fire, wind, and hail, as well as other named perils, are insurable. We explain how insurance-to-value applies and can provide options of replacement cost, actual cash value, or functional value.
Loss of Business Income Insurance:
Suppose your residential rental investment property is damaged enough to become uninhabitable, which puts you at risk of losing rental income. It is very important that loss of rental income due to an insured named peril be addressed when you purchase investment property insurance. We can help you evaluate the level of insurance, both in terms of duration and amount, to consider for your situation.
General Liability Insurance:
This coverage addresses premises/operations liability, the most common of which is slip, trip, and fall claims. Why be concerned about a trip and fall accident? One reason is a bruised elbow or tailbone could morph into years-long medical expenses. Also, realize the person(s) to whom you may be liable for injury is not limited to a tenant. It could be anyone, including the mail carrier or a guest.
Cyber Liability Insurance:
This is a newer product to consider purchasing in addition to investment property insurance for those owners who collect rental income electronically. A breach of your financial account(s) may expose and compromise personally identifiable information of your renters. You may be held liable for ensuing loss.
Automobile Insurance:
Investment property insurance must include automobile insurance, if you own, lease, or use a vehicle in the operation of your investment property.
Richey-Barrett Insurance is a Trusted Choice Independent Insurance Agent experienced in providing common-sense Ohio Investment Property Insurance solutions, which balance your exposure to risk and budget concerns.
