Tip of the Month - July 2010

MAKING THE RENT- Know Your Insurance Expenses

Source: Real Estate by Laura Washington

Before you buy, you should ask your Home Inspector if anything-such as old wiring or roof damage-could affect your ability to get coverage.  Assuming the answer is no and you do get coverage, don’t be surprised when you get the bill.  Depending on location and value of your rental property, you could pay 15% to 25% more than a typical Homeowner for insurance, according to Madelyn Flannagan of Independent Insurance Agents of America, a trade group in Alexandria, Va. The reason: Without the Owner on the premises, there is a greater risk of damage to the property.

Insurance specialists also recommend that Landords have a $500,00.00 to $1 million umbrella liability policy to protect them from personal-injury lawsuits.  Depending on your property and the limits you choose, this coverage can run an additional $250.00 per year.

Tip from Crossett Real Estate Services

Check to see if your property is located in a Flood Plain-this can add extra costs: Lenders require Owners of properties located in Flood Plain areas to provide flood insurance for the life of your loan. Are there any environmental concerns?

Where is the nearest fire hdyrant? Who provides fire & police coverage, to your property-who do you call-have all numbers available for your Tenants, your Manager, yourself:

Crossett’s rule: your insurance coverage is only as good as the Agent that sold it to you: spend some time to discuss your needs with an agent that can spend time to discuss your insurance options.

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This web page was updated on 06/30/2010.