several insurance options worth considering, Home Insurance Tips for Real Estate Investors : Investing in real estate can be a risky business endeavor, but one way to minimize this risk is to have the correct insurance policy. Did you know that there are special homeowners insurance policies that cover a variety of aspects of your investment? Here are several insurance options worth considering.
Title Insurance is required if you are getting a loan for your property and should be greatly considered if you are not getting a loan. Title insurance will help protect you in the event of a discrepancy on the title. This could be from unpaid taxes, liens that were placed on the property, or forged signatures on the transferring title. Title insurance will pay your legal fees if there are ownership problems that can only be resolved in court. Title insurance has a onetime fee, usually at closing, but offers you protection as long as you own the property.
Landlord Insurance
Landlord insurance is an insurance policy that will protect your investment if you have tenants that will be renting your property. Landlord insurance policies are very similar to homeowners insurance. Most forms of landlord insurance will protect your home from damages and give you liability coverage also. The one thing that most landlord insurance policies do not cover is contents of the home. Your tenants should purchase renter's insurance; this will give them the protection they desire for their contents. There are many riders that you can add on to your landlord insurance policy. These should be discussed with your insurance agent or lawyer to ensure that you have the correct coverage.
Builders Risk or Construction Insurance
If you are planning to add on to your real estate investment, you may need a construction insurance policy. Construction insurance will give you the protection you need to cover the structure as it is being built and any materials you may have already purchased. Your policy may even cover your materials if they are stored somewhere other than your property or if they are damaged in transit. Construction insurance generally protects your investment from fire, theft, and certain natural disasters. This coverage usually has a time limit of one year or when the project is complete, whichever comes first.
Vacant Homeowner's Insurance
Did you know that your homeowner's policy may not cover your home if it is vacant for more than thirty days? If a home you own will be vacant for more than thirty days, you may need a specialized policy. These vacant home insurance policies may be as easy as adding a rider to your current policy or you may have to search for a company that offers this type of insurance. This insurance can sometimes be hard to get because insurance companies see vacant houses as a risk--since no one is living there, it has a better chance of being vandalized. These policies typically have a term of three months to one year and can be a little more expensive, but well worth the money. (source http://cmvlive.com/money/stocks-a-investing/1042-home-insurance-tips-for-real-estate-investors )
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thanks for explaining the different types of insurance, I have inherited a house which i am in the process of renting it out but i have been told to get my normal house insurance to landlord insurance for the rental market is that correct?
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