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Your Real Estate Investment Insurance May Be Affected By Building Components

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.

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Landlord Horror Stories, How To Prevent and Minimize Real Estate Investor Risks

Real Estate Investor Risks Can Be EXTREMELY Damaging

Real Estate Investor Risks Can Leave You EXPOSED

Here at Benchmark Insurance, we have seen a host of real estate investor risks, some of which could only be described as Landlord Horror Stories.  These are the stuff of nightmares, and not only do they put the tenant(s) at risks, but they can leave you extremely exposed and open to anything - from liability costs to fines to lawsuits.

What Kind of Real Estate Investor Risks Can There Be?

There are all kinds of real estate investor risks and subsequent landlord horror stories that are possible.  As mentioned, at Benchmark we have seen our fair share.  We have seen Marijuana grow operations and other drug related issues, such as tenants believing they can deal drugs on property or simply using illegal drugs themselves.   We have also seen cases of vandalism, issues of hoarding, and everything in between.  These issues also range in their levels of severity as well, from merely a nuisance to the landlord or other residents, to an extreme issue that can result in property damage, death, and lawsuits. There is simply no telling how extreme issues can go.  Thus, if you are a real estate investor, then you need to maintain coverage.

How To Mitigate Real Estate Investor Risks?

First and foremost, if you are a Real Estate Investor, then you need to make sure that you have the right kind of insurance.  That not only means you need to right coverage for your property type, but you must also know if you need additional liability coverage as well.  For example, a multifamily investor would need different coverage than someone that simply uses their property commercially.

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Exotic Pet Liability, What Are The Risks?

WITHOUT EXOTIC PET LIABILITY INSURANCE, YOU MAY BE LEFT EXPOSED

WHAT YOU NEED TO KNOW ABOUT AN EXOTIC PET LIABILITY

Are you aware that exotic pet liability insurance can salvage any risks that you, as an investor, can have?  Exotic pets can no doubt be interesting - from tarantulas to chimpanzees and everything in between.

For Texas, the laws can be extremely complex and differ greatly for the type of exotic pet in question.  For example, an individual would need a license when it comes to bears, cougars, chimps, etc. but no license is needed when it comes to owning a wolf or monkey.

However, as a landlord, exotic pet liability can be an even further complex issue when you consider the risk.

What Is An Exotic Pet Liability Insurance?

In essence, Exotic Pet Liability Insurance simply refers to the coverage that is put into place should something happen with the exotic pet.  For example, if the exotic pet gets loose and then injures another resident, you may be at risk.  We have seen this particular instance occur with a black panther who not only got loose, and scared many residents, but actually mauled a small child.  It is not just the tenant that is then held liable, but also the landlord as well.

Do I Need Exotic Pet Liability Insurance?

Not necessarily.  It is possible that you, as a landlord, can simply ban exotic pets from your properties altogether.  This is especially a viable solution if you own a multifamily property.  However, if you do accept that your tenants will potentially have exotic pets on the premise, then you need to ensure that you look into exotic pet liability insurance to help mitigate risks.

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Personal Or Commercial Insurance Shouldn’t Be SCARY!

Shopping For Personal Or Commercial Insurance?

The More You Know About Personal Or Commercial Insurance, The Less Frightening It Will Be

What scares people about shopping for personal or commercial insurance? That they don't understand it!   On average 95% of people have little to no knowledge about the many nuances pertaining to their policies, such as policy coverage or exclusions.  This can be problematic because, if one does not understand the type of insurance they need, then they may not be fully covered or find their rates higher than necessary.

Why Is Personal Or Commercial Insurance Important?

Most individuals understand what personal insurance is - for example, life insurance, auto insurance, home owner's insurance, and so forth.  However, what about commercial insurance?   If you own your own business, then you are going to need this type of insurance, no matter if you own an auto garage, are a landlord with a multifamily property, or so forth.  Commercial insurance, like personal insurance, will protect you in the event that a liability occurs.  For example, if a worker injures themselves in your auto garage or a  tenant falls down a flight of stairs - commercial insurance helps cover you!

What Don't People Understand About Insurance

Most individuals do not understand the nuances of insurance.  For example, what kind of exclusions might apply?  Exclusions are essentially that which is not covered by the policy.  What about liabilities, or the policies themselves.  There is simply a  great deal of information that goes into  insurance.  Having the right agent, one that will help alleviate any concerns and explain all of these factors, is ideal.

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Why You Should Shop For Landlord Insurance Outside of Hurricane Season

OUTSIDE OF HURRICANE SEASON IS IDEAL FOR LANDLORD INSURANCE

LANDLORD INSURANCE RATES FALL OUTSIDE OF HURRICANE SEASON

If you are renting out a property at all, no matter what type of tenants you have (families, students, assisted living, section 8 housing, etc.) then you are going to need landlord insurance.  However, when shopping for any type of insurance, you may want to know what is the most ideal time period in which to get the better insurance rates and save significantly.

What Is Landlord Insurance

In short, landlord insurance is a form of insurance that applies to your property, whether it is a multifamily or a single person dwelling.  Anytime you rent out your property, then the title would apply to you.  Landlord insurance offers many different types of coverage that would be a benefit towards your real estate investment.  For example, it not only covers property damage, but it also covers payment defaults, as well as other types of liabilities.  While landlord insurance does not cover every single claim, as it would depend on the type of insurance you buy, it does offer significant protection.

Why Should You For Landlord Insurance After Hurricane Season

After hurricane season, rates are typically lower than during hurricane season.   This is simply because the looming potential damage that could possibly occur, such as with flooding or wind and hail damage, is made more readily apparent.  This works as a benefit for real estate investors, who may be looking for a new insurance plan.  This also means that if your policy expiration also falls out of hurricane season, then it would be the perfect time to shop for insurance