Home insurance for rental property

Buying a rental property can be a great investment in Louisiana

Only if you buy in the right neighborhood for the right price

If not what appeared to be a good investment can turn into a drain on your bank account

but if you choose the right rental property you can put together residual income for a long time and even could be your retirement plan

 

What we can do is help you lower your insurance expenses and provide you the protection you need

 

Two types of insurance policies you need

1) One policy for all your properties

This was not possible for many years but now you can add all your properties on one policy and get one insurance bill

 

2) Personal Umbrella policy

Once you purchase your first property you don’t want to lose after one claim

Most rental property investors believe it is the slip, trip n fall claim but what about your tenant starts a fire in your property and a few houses next to yours also catches fire?

Your liability coverage would need to pay for the damage but if you only have 100,000 you could be paying out of your pocket

The umbrella insurance policy kicks in with an extra 1,000,000 of liability for property damage to others after your primary liability of 300,000 is paid

 

To protect your real estate portfolio you need to buy the right protection

You want coverage for the

  • Structure (fire, wind, hail, vandalism, theft, water damage and more)
  • Unattached structures
  • maybe some contents inside (appliances)
  • Liability protection for injury and property damage
  • Loss of rental income
  • Free legal representation from covered claims by your insurance company

 

You want your policy to be written in your personal name or an LLC

Standard policies cover 1-4 family properties for landlord property investors

If over 4 units, you would need a commercial property policy

 

Cost of insurance?

It depends on the property

Price varies in each zip code and construction type

You will pay less for Brick houses

Hip shape roof over gable roof will earn you a discount

Year built helps too (the newer the property, the lower the rate)

 

Landlord Rental Insurance for older homes

If you buy an older home but it was renovated you can get a discount on the rate

The updates the insurance company is looking for would be an update to the

roof

electrical

plumbing

heating air conditioning

If you update those four items on an older home you will get a reduced rate on the rental dwelling quote

 

What limit of liability can I get to protect myself?

You can get 100,000 but the minimum you should purchase is 300,000

Some companies offer 500,000

To qualify for a personal umbrella you need to have at a minimum 300,000 on your rental property policy

When you purchase a personal umbrella the liability limit starts at 1,000,000

The additional 1,000,000 of liability protection will be in addition to the underlying liability limit on your

  • house
  • cars
  • boat
  • rental properties

Protecting your real estate investments from property damage and liability claims is the most important 

If you would like a protection proposal for a rental property you want to buy or get a review on your existing real estate portfolio 

To get a quote click here www.fmagencygroup.com/#quote