Loss of rental income coverage vs Rent default insurance

One of the most important insurance coverage options for real estate investors is loss of rental income

But most insurance policies don’t automatically provide rental income loss coverage

When a claim happens and your rental property is no longer safe for your tenant to occupy they must leave

Your tenant is no longer going to pay you rent and when that happens you may no longer be cash positive on the property

At FM Agency Group we help show rental property investors how to use insurance to protect their investments

 

LOSS OF RENTAL INCOME COVERAGE

Landlord rental property owners can purchase this coverage to provide a monthly benefit to you so will not be out of pocket when your tenant will no longer pay rent

This coverage is provided as the result of a claim and not a stand alone loss of rental coverage

When you need to make a claim on your home and your home is no longer habitable the insurance company will provide you loss of rental income based on the time it takes to rebuild your property per the estimate

If there is a kitchen fire and the estimate is for 2 months of repairs you will get loss of rental income for two months in addition to the estimate for damages to rebuild your kitchen

The cost is included in a rental dwelling three DWG-3 policy form and could be as low as $7 a month

Check your rental property insurance policy to see if you have loss of rental income because not all policies include this coverage and it is too important to not have on your policy

 

RENT DEFAULT INSURANCE COVERAGE

This is purchased as a stand alone insurance coverage and does not apply when your property is damaged and no longer habitable

This coverage is based on your tenant no longer occupying your property and breaks the lease

Yes you can just keep the deposit but rent default insurance can pay you up to 4 months of loss of rental income

The cost could run as much as $500 a year and it is based off of the monthly rent

There are many pre-qualification elements that your tenant must meet before the policy can be issued

 

Here are some of the most important rental property insurance coverages you need

  • Loss of Rental Income
  • Lawsuit Protection
  • Sewer back up
  • Service line replacement
  • Equipment Breakdown

Not all policies include all of the these coverage options but if you are interested in one of our insurance proposals for real estate investors just complete the quick for below

 

 

A better insurance broker for New Orleans Real Estate investors

We’re building a better insurance broker for real estate investors by providing lower rates on New Orleans rental property insurance

Our rental property insurance market includes a lot of older homes and not all insurance company want to write older homes

You need to work with the best insurance broker to find you the coverage you need

Here are some of the policies we offer for Real Estate Investors

 

VACANT HOME INSURANCE

When a property is up for sale with no intention of a getting a tenant

You need coverage for fire, wind, hail, vandalism and water damage

We can provide the insurance protection on a per month basis so you don’t pay for more insurance than you need

RENOVATION HOME INSURANCE

When you purchase an investment property in New Orleans it is probably going to need a renovation and if you don’t intend to move a tenant in within 30 days you need to consider a renovation policy

Depending the extent of the renovation you may just need a two month policy and we can provide you a renovation policy on a month to month basis and when you are ready for a tenant we can just endorse the policy to correct classification or if you decide to flip the house and put it back up for sale we can make it a vacant home insurance policy

RENTAL PROPERTY LIABILITY INSURANCE

Each policy includes 1,000,000 of premises liability which covers one of the most common claims against landlords….the slip,trip and fall claim

MORE THAN ONE PROPERTY ON A POLICY

For some real estate investors having more than one property can be a difficult task keeping up with the renewal insurance bills

At FM Agency Group we can provide a single policy solution for all your investment properties in New Orleans and we can provide the coverage each property needs such as a vacant home insurance, renovation home insurance, short term lease and annual leased properties

We want to help you lower your expenses so you can buy more rental property

Complete the quick form below to get started

 

 

Liability insurance for Laplace real estate investors

Real estate investors in Laplace need to know how much liability insurance is enough to protect their rental property investments and should use an insurance broker to help them find the best coverage at the lowest rate 

Most rental property policies start at 100,000 of liability or lawsuit protection and in our community we know 100,000 is not enough

 

The cost of hiring an attorney to defend you can exceed 100,000 so for as low as $20 a year you can get much more lawsuit protection 

No matter what you do as a landlord rental property owner you can’t prevent a tenant from having friends over and a guest trips, slips or falls

These are the most common liability claims presented to landlords

Since you can’t prevent your tenant from suing you regardless if you are actually liable you need to buy as much liability insurance offered

The standard liability lawsuit protection limits are 100,000 to 1,000,000

What is the cost of Liability insurance in Laplace for Real Estate investors?

A rental property insurance policy should included liability unless you purchase a Citizens Fair Plan dwelling policy because these policies do not include any liability protection just property coverage

The difference from 100,000 to 300,000 could be as low as $20 a year so if your policy only has 100,000 let your insurance broker know you want to raise it up to 300,000

A few insurance companies do offer 500,000 on their rental dwelling policies and your insurance company offers the 500,000 limit it is in your best interest you buy it

When you get a letter in the mail on behalf of your tenant from their plaintiff attorney that is the moment when you want as much liability as you can get

Most common claims against Laplace Real Estate investors

  • Slip, trip and fall from tenant or tenant’s guest
  • Tenant caused fire

Does Liability insurance cover a fire caused by a tenant?

If the damage results in property damage to others but not your tenants

Your tenant needs to carry their property insurance coverage for their personal property but if the fire causes damage to the neighbor’s house or vehicles parked in the driveway your liability insurance policy will pay for the neighbor’s property damage

Liability insurance is not just for slip, trip and fall claims

 

It also covers property damage you are legally liable for so if your tenant’s kitchen fire burns down the neighbor’s house your liability insurance limit needs to be high enough to cover property damage claims against you as well and the minimum of 100,000 is not going to be enough

If you are a Laplace Real Estate investor and need to lower your expenses or increase your insurance protection on one or one hundred properties FM Agency Group is the best Laplace insurance broker for real estate investors

Complete the quick form below to get started