Friday, May 6, 2011

Insuring Your Investment Property

Majority of property investors have some sort of insurance policy in place to protect their asset. Frequently, as nearly all investment properties are traditional purchase and hold rentals, the policy is a landlord's insurance policy. Given the natural disasters that appear to be happening all over the world these days, you could prefer to consider reviewing your landlord insurance policies with the help from a reputable third party service like the California Escrow Service.

In a moment your valuable real estate asset can be swept away by floods, bush fires, earthquakes, etc. That's where your insurance comes in. Here's something that may sound fairly perceptible - insurance is only a good investment if it pays out.

Have you verified your landlord's insurance policies to see if you're protected for the kinds of damage so many places in the world have been subjected to recently?

If you're covered for water damage, does that include or exclude floods?

Make certain you demand if internal fixtures are covered because not all policies cover fittings like carpets and curtain either. You may find you're covered for building replacement, but not for any internal fittings like kitchen cabinets, linoleum floors, curtains or blinds, built in cupboards, etc.

How about electrical problems?

If your investment property is swamped, and this bring about disorder with the electrical systems, is this covered or isn't it? If you are not covered for flood damage, and the flood causes the electrics to short out, in some cases, they may not be covered either - even if you have coverage for electrical faults.

Insurance companies are businesses - they can be tricky to deal with and they are there to make money.

Be sure you've protected your assets properly, after all the hard work you put in to investing in property and building your portfolio. Due diligence applies to your insurance policies too.

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