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Asset Protection & Insurance: Is Your Wilmington Rental Property Covered?

Filling Out Insurance Paperwork with a Model House in the Forefront

It’s no secret that Wilmington landlords demand substantial insurance to preserve their real estate investments. However, there are numerous types of insurance, each with its own coverages and restrictions. This can make figuring out which insurance you need quite difficult. There are many options available, including landlord or investor insurance, landlord liability, umbrella, and flood insurance, to name a few. Seeing as various kinds of insurance are designed to protect specific items, knowing the function of each can aid you in deciding how to protect the assets of your rental property with the suitable type and amount of coverage. 

Landlord Insurance 

Landlord insurance is one of the most crucial types of insurance that property owners demand. Landlord or investment property insurance, as opposed to homeowner’s insurance, covers investment property. This insurance covers the rental property and typically includes exterior elements like sheds or fences. The majority of Wilmington property managers mandate that their tenants purchase their own renter’s insurance policy, as well as occasionally tenant liability insurance because landlord insurance does not cover your tenant or your tenant’s personal property. 

Landlord Liability Insurance 

Landlord liability insurance is additional essential insurance you ought to be aware of. Although landlord liability insurance is distinct from investment property insurance, it is commonly included in policies. This is due to the fact that this type of insurance covers losses associated with damage, theft, or vandalism caused by tenants or their guests, as well as liability in the event of injury. The primary aim of landlord liability insurance is to preserve your rental property and the financial aspects of your investment. 

Umbrella Insurance 

An umbrella policy is precisely what it sounds like: broad protection for a rental property that offers an additional layer of security for those who own real estate or work in a field that is subject to lawsuits. Given that being a landlord falls under both of these categories, it is essential to think about getting an umbrella policy to protect your assets if you are sued for damages that exceed the scope of your other insurance coverage. Additionally, these policies typically offer protection to the insured against loss of rent, damage to other properties, and injury brought on by third parties, such as a tenant. 

Flood Insurance 

It is worth noting that even an umbrella policy normally does not cover flood-related losses to rental property. Flood insurance is typically sold as a separate policy through the National Flood Insurance Program (NFIP) for different reasons. The physical structure of the house and any detached garages, if any, are typically insured for their actual cash value rather than their replacement cost. Since their property is not situated in a “high-risk” area, many Wilmington property owners believe they do not require flood insurance; however, in actuality, floods can and do occur anywhere and frequently happen without warning. Regularly, flooding damages and destroys homes, whether caused by a burst pipe or an unusually heavy downpour. 

With multiple sorts of insurance available, it’s vital to carefully consider how much your coverage amounts to so that you ensure you aren’t paying for insurance you don’t need and that the insurance you do have offers the right level of protection. If you don’t have dependable industry experts on your team, it can be difficult to determine whether you have the appropriate insurance coverage. Real Property Management Champion can help you select the best insurance coverage to guard your valuable properties and financial well-being. To learn more, contact us online or call us at 910-782-4488.                              

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