Your homeowner's insurance isn't enough! Operating rental properties in Seattle means you own and operate a business. With a business comes the need for the right insurance coverage to protect your properties, income, and business from potential lawsuits.
Having a homeowner's insurance policy was the right choice if you once lived in your property. However, when turning your home into an investment property or buying rentals in the area, homeowner's insurance doesn't provide the coverage you need for protection against the unexpected.
When you set up a business entity for your investment properties, take the time to review your insurance policies and make sure you're covered! Use these insights from Real Property Associates and the best Seattle property managers to ensure you have the right insurance coverage!
Why Isn't Homeowner's Insurance Enough?
Most homeowner's insurance policies only cover owner-occupied homes. The minute someone signs a lease and pays the rent to live in your property, it's no longer "owner-occupied." Your homeowner's policy no longer covers damage from theft, fire, water, or injury if a renter gets hurt on your property.
Investors need property insurance that covers damage to a rental property when you don't live in it. You also need protection against rental income loss and liability when something goes wrong while a renter is occupying your property. If you're not sure where to start, the best Seattle property managers can guide you through getting the coverage you need to protect your properties and long-term real estate income.
Rental Property Insurance Keeps You (and Your Income) Covered
Think of landlord insurance as the alternative to homeowner policies when owning and operating investment properties as rental homes in Seattle. You don't need to add landlord coverage to an existing homeowner's policy. Instead, investors need specific rental property coverages to take the place of homeowner's insurance for your rental properties.
When choosing the right coverage, investors need protection for property damage, rental income loss, and liability claims.
Protect Against Property Damage
Your Seattle rental properties are one of your most significant assets! Keeping them in excellent condition with a year-round maintenance plan is critical—but what happens when something causes significant damage unexpectedly? Whether a resident causes property damage (intentionally or accidentally) or your property suffers from extreme weather or a fire, the right insurance policy helps you recover faster and repair the damage.
The best Seattle property managers can help you analyze your property and find the right property damage coverage for your rentals.
Protect Your Income from Loss
When a renter defaults on their rental payments, real estate investors lose money. If your property sustains damage and becomes unlivable for your residents, you lose monthly rental income until the property is rental-ready again. However, with the right rental income loss coverage, investors can file a claim and receive compensation to offset expenses and financial loss while repairing a property. When renters move in again, they resume paying the rent.
Some landlord insurance coverage includes rental income protection, while other policies require a separate rider. Consult the best Seattle property managers to review policies and make sure you have adequate income loss coverage for your properties!
Protect Your Business from Liability Claims
One liability lawsuit can ruin your rental property business. Even if you win the lawsuit, the legal process is expensive, time-consuming, and can shut down your rental property until the claim is resolved.
Even when delivering a safe, well-maintained Seattle property, accidents can happen. Sometimes renters also make claims to avoid paying their own medical expenses when they sustain an injury while living in your rental. Liability coverage protects you when a renter falls on your property and suffers an injury. Your insurance company handles the lawsuit and settlement while protecting your income from a large cash payout.
Work with the best Seattle property managers to ensure you have the right liability coverage to protect your income and your ability to continue operating legal rental properties in the area.
Renters Need Renters Insurance
Landlord insurance coverage protects you, your properties, and your income. However, these policies do not provide any coverage to renters when they suffer personal property damage or an injury.
Make sure your renters have an active renters insurance policy when screening and qualifying new residents for your rentals. Renters insurance covers renters' needs when something goes wrong during their lease term.
Are You Covered? A Property Manager Can Help!
Not having adequate rental property insurance is a significant risk for real estate investors. You never know when something can cause substantial property damage or rental income loss. Recovering without the right coverage for your Seattle rentals can be expensive and slow, leading to more income loss while your property is out of operation.
Let the best Seattle property managers help you find the right insurance coverage for your rental properties! Real Property Associates works with investors to set up the best policies for each rental in their portfolios. Learn more about the protections you need for success with a free copy of our Guide to Protecting Your Investments!