Are Your Real Estate Investment Insurance Rates High?
Did You Know Your Real Estate Investment Insurance Rates May Be Affected By Building Components?
Have you gotten a Real Estate Investment Insurance quote that seems a little higher than normal? Or, are you shopping for insurance rates and need to know what the comparable rates might be?
Why Real Estate Investment Insurance Is Importance
You know that you NEED insurance, but why is it so important that you have it? Because anything can happen! If your real estate investment goes through a flood, and you later rent it out. Will your tenant then complain of mold issues? Insurance acts as a type of buffer to protect you and your assets.
That is also why it is important to get the best insurance rates possible. The key is to keep rates low while still offering you viable protection.
How Building Components Affect Real Estate Investment Insurance
The construction elements of a building are extremely important when it comes to a real estate investment. As previously explained, components such as the type of building (brick for example), plumbing, electrical, and other aspects of construction will all determine what insurance rates you might see.
The same is true for wiring. Depending, on what type of wiring you have in your real estate investment property, you may be paying MORE for insurance?
That is because copper wiring has become the preferable industry standard. That means if you have aluminum wiring, then you may not even be covered for insurance, and if you are, you will pay out more in insurance.