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.
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.
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:
to prior page
This web page was updated on 06/30/2010.