What Insurance Should I Have For My Rental Property In Orlando? An Investor’s Checklist
Looking for investment properties to flip, buy and hold, or wholesale? Specializes in finding and offering deeply discounted area real estate to investors
Investing in housing is different than investing in stocks, mutual funds or bonds. Stocks are speculative, and they’re also a “paper asset.” The stock’s price may go up or down but there isn’t much that can happen to the “financial instrument” itself (especially since they’re stored electronically instead of as stock certificates now). Real estate on the other hand, when done properly, produces steady cash flow and is a real asset… which means something or someone could damage to your house.
The cash flow is nice… but you need to protect the real asset (and yourself). That’s where insurance comes in. Insurance is like a “reset button” to help you recapture your investment. If you invest in real estate, maybe you’re wondering, “What insurance should I have for my rental property in Orlando?”
Here’s a checklist of insurance that you may need:
What Insurance Should I Have For My Rental Property In Orlando? An Investor’s Checklist
Looking for investment properties to flip, buy and hold, or wholesale? Specializes in finding and offering deeply discounted area real estate to investors
Investing in housing is different than investing in stocks, mutual funds or bonds. Stocks are speculative, and they’re also a “paper asset.” The stock’s price may go up or down but there isn’t much that can happen to the “financial instrument” itself (especially since they’re stored electronically instead of as stock certificates now). Real estate on the other hand, when done properly, produces steady cash flow and is a real asset… which means something or someone could damage to your house.
The cash flow is nice… but you need to protect the real asset (and yourself). That’s where insurance comes in. Insurance is like a “reset button” to help you recapture your investment. If you invest in real estate, maybe you’re wondering, “What insurance should I have for my rental property in Orlando?”
Here’s a checklist of insurance that you may need:
Checklist: What Insurance Should I Have For My Rental Property In Orlando?
There are many possible insurance products that can benefit you but the primary ones are below. (You may choose to purchase the relevant ones separately or you might want to ask your insurance broker if they have “landlord’s insurance” since some insurance companies will package the right ones together for your convenience.)
Property Insurance. Property insurance should safeguard you financially from many of the accidents and natural disasters that may hurt your property. All policies are different but you might get property insurance that covers you for fire, lightning, wind damage, etc. If you live in an area prone to a certain type of natural event (such as floods), you may need to acquire an additional “rider” for that special situation.
Liability Insurance. If a tenant or visitor injures themselves on your property, they may sue you to help pay for their medical bills and loss of employment income. Liability insurance helps to protect you from the financial burden if a lawsuit goes against you.
Tenant Insurance: Tenant insurance isn’t something you need to get for yourself but we’re mentioning it here because it’s something you should urge your tenants to get. Tenant insurance is insurance for tenants that will cover any financial loss of their belongings. The cost is very reasonable and a tenant may add the cost of their household insurance to their car insurance policy.
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