Landlord/Rental Insurance; the endorsements on the policy are what matters

As an insurance agency that insures hundreds of Landlords and Property owners, our goal is twofold.

1. Offer coverages that fit the specific needs of the Landlord/Property owner.
2. Work with insurance companies that offer these coverages at a competitive premium.

We’ve helped our clients when the catastrophe strikes.  Whether the claim stems from a hurricane, a fire, a flood or a tenant lawsuit, your insurance policy is only as good as the endorsements that are listed on the policy.

Most North Carolina property policies follow the same types of guidelines.  These policies will cover Fire, Lightning, Wind and Hail.  Not all claims fall under these categories.  But what about the things you don’t even think of happening?

Would it be unrealistic that your property be vandalized while it’s vacant and in between tenants? How about the sewer backing up into the house and causing major damage?  One more just for fun……. How about a tenant that upon their eviction, they decide to take their anger out on your rental property and go on a wild rampage of destruction?   These are real claim scenarios with real money at stake; and the money is yours.

When it comes to Landlord/Rental Insurance, you must ask yourself, “what do I want the insurance policy to pay for and what do I want to pay for?”  This question can be hard to answer without knowing what to ask.  I’ll help get you started?

1. Do you want to be covered if your tenant sues you for personal injury or wrongful eviction? Can you afford to pay for this lawsuit out of pocket? Maybe you can stand a small lawsuit but what about one that has a comma and a few zeros?
2. Liability Lawsuits can wipe you out financially. Legal fees alone can put your finances at risk.
3. Is Rental Income/Loss of Rents important to you?
4. What if your property has a fire, it’s unlivable and your mortgage payment is paid from the rent you receive?
5. Will your property have insurance coverage if it’s vacant/unoccupied in between tenants for over 30 days? How about 90 days?
6. Vacancy clauses in many insurance policies are often overlooked by the Landlord/Property owner. Claims occur when you least expect them.
7. Replacement Cost, Repair Cost, Actual Cash Value; do these terms really matter at claims time? Why is it important to know how the loss will be settled during claim?
8. Many Landlords/Property owners have no idea what their loss settlement is. Claims time is the wrong time to learn how you’ll be paid.
9. Do you want to replace your property if it’s damaged/destroyed?
10. Do you want to simply repair it without depreciation?
11. Do you want agreed value?
12. Do you want to receive the depreciated amount, lick your wounds, bulldoze it and sell the lot?
13. When a loss occurs, what coverages do I want to have?
    1. Basic form?
    2. Comprehensive form?

We’ve talked about coverage issues, now let’s talk about how to save money and get excellent coverage at the same time.

Here are some discounts that our clients have taken advantage of:

• Multi-property policy
• Member of a Landlord Association
• Use a Property Management Company
• Have a strong credit-based insurance score
• Claims Free
• Newer Home
• Tenant Screening
• Masonry
• Central Fire Alarm
• Age of the Landlord/Property Owner
• And more………..

 Now that I’ve overloaded you with all this detailed insurance information, you may be thinking; “where do I begin to start with my Landlord/Property insurance?”.  That’s where we come in.

My agency is recognized as being “Landlord and Rental Property Insurance Specialist”.  Kristy Stewart and Lori Grantham, both insurance agents at my office, have earned this prestigious designation to assist you in getting the right coverage options for your rental property needs.

Remember, insurance coverage is all about the endorsements.