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Michael Gonzalez
Michael Gonzalez, Lawyer
Category: Real Estate Law
Satisfied Customers: 60
Experience:  Managing Member at Perez-Mena & Gonzalez, LLC
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We own and manage investment real estate. other than general

Customer Question

we own and manage investment real estate. other than general property insurance, should we consider purchasing business insurance specific to real estate? what are some considerations in determining if business insurance is right for us?
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Michael Gonzalez replied 6 months ago.

Hello and welcome to JustAnswer.

I presume you are renting out these properties. Therefore, Landlord insurance would be the option. Landlord insurance provides coverage for property owners renting out one or more residential homes, apartments, or condos. As a landlord, you need protection from financial loss that may result from damages to a rental property due to fire, break-in, severe weather and more. You can get insurance to help cover loss of income in the event that your rental units become uninhabitable due to circumstances beyond your control.

Your property damage coverage has limits – be sure you are aware of what they are, and remember that you will need to pay a deductible before you’ll get any reimbursement from your insurer. If you have loss of income coverage, you can be compensated for the rental income you will lose during repairs.

Note that landlord property damage insurance sometimes pays for tenant damage, and sometimes it will not. Taking a rental deposit at the time your tenant signs a lease is a good idea. You can also ask your agent if you can add coverage for tenant damage.

Also, your coverage could include liability coverage which protects you against liability claims and lawsuits. Whether a tenant, visitor or even a trespasser is injured on your rental property, you could find yourself in a legal mess. Your liability insurance will help you cover the costs associated with bodily injury claims on your property. These costs can include medical payments, funeral costs, legal fees and judgment or settlement costs. You will also be covered if you, as the landlord, are found responsible for another person’s property damage.

Loss of income and rent guarantee insurance will help compensate you for lost income in the event that a rental property becomes uninhabitable due to a covered loss, such as a storm or apartment fire. Your loss of income coverage, or “rental reimbursement,” will prevent you from losing the income you would have had if you were collecting rent.

Please contact a local insurance agent to see what coverage is available to you.

Expert:  Michael Gonzalez replied 6 months ago.

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer – otherwise, I receive nothing for my efforts in your behalf.

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