Property insurance protection for Landlord rental property insurance in New Orleans
Finding the right insurance policy to protect your real estate investments is not as easy as you think.
Some policies are sold without liability protection.
Some polices are sold with not enough coverage.
Talking with an insurance advisor that understands the landlord insurance market in New Orleans is important.
Some properties need to be insured in an LLC.
Other properties should be insured in a personal name.
We have access to the right insurance markets to meet your needs as a real estate investor.
What coverage does a real estate investor in New Orleans need?
Do you have enough?
The answer is always NO.
At FM Agency Group when we review a real estate investor’s landlord rental property policies, we often find only 100,000 of liability.
Liability insurance is the coverage you need when someone makes a bodily injury or property damage claim against you.
If you live in New Orleans, you should protect your real investments with the proper liability protection.
The minimum you can buy is $100,000.
The difference between $100,000 and $300,000 of liability can be as low as $25/year.
Some policies offer up to $500,000.
If you need more liability, and you should, you can purchase an Excess Liability policy up to $10,000,000.
You can schedule all your landlord investment properties on one excess liability policy.
LOSS OF RENTAL INCOME
When a claim happens and your property is no longer habitable by your tenant, you need to be compensated for loss of rental income.
Your tenant may have to find another place.
Your property may take months to fix.
Your landlord rental property insurance policy will provide loss of rental income to the extent of time it takes to get your property repaired per the limit on the policy.
What are some common claims against an owner of Landlord rental property in New Orleans?
Unknown negligence results in an injury claim on the property
Faulty dryer you provided catches fire and causes injury or property damage
Cracked driveway leads to a trip in fall claim against you
Tenant’s action leads to a fire that damages the neighbor’s house
Balcony collapses and causes injury
Tenant trips on stairs and has to go to the doctor
What is NOT COVERED by your Landlord Rental Property policy?
Your tenant is responsible for their own property.
Your policy would not cover their belongings unless you were found negligent.
If you were not legally liable, your policy doesn’t pay.
They can purchase an inexpensive HO-4 tenant policy for less than $200 a year in most cases.
This policy would provide liability and property coverage for your tenant.
This is a great tip to add into your lease requirement.
This HO-4 policy provides you an extra layer of liability if your tenant is responsible for injury or property damage.
Do you have a Louisiana Citizens Fair policy for your landlord rental property insurance?
If so you are missing some import insurance protection
You have NO
- Liability insurance
- Unattached other structures (fence, shed or detached garage)
- Loss of Rental Income
As a real estate investor, you need these coverage options to completely protect you.
At FM Agency Group, we can help investors who have purchased Louisiana Citizens Fair Plan landlord rental property policies and replace them with over 10 insurance companies that are writing in New Orleans.
Our policies include liability, loss of rental income and unattached other structures.
If you are ready to see what we can do for you, give us a call at 504.348.3131 or complete our quick form.