People tend to think of residential properties as one-time investments. When, in reality, more than 17% of owners run into damages that they cannot financially recover from. Even if you were to keep your property insured properly, one insurance might not be enough.
Contrary to popular belief, the coverage areas of single insurance are not enough to reimburse all the damages that your property may endure. You must either get a combination of packages or look for a policy that has all of the coverages that we are about to see in this article.
Make sure that your insurance has all of the following coverages, especially if you have tenants living on your property. Do not skip the sentences and read them carefully because we have a bonus point for you at the end.
How Crucial Is Home Insurance For A Property Owner?
If you are still paying a mortgage for your property, your lender will most likely ask you to get the property insured. Most banks will check if you have insured your property before they even approve your loans.
Home insurance keeps the value of your property from getting decreased due to damages. A home insurance policy typically covers more than just the physical structure. Some insurance policies cover all the personal belongings and appliances that you’ve kept inside.
Even though they are rare, natural disasters and fire damages could cause extensive damages to your property. Insurance cannot protect your property from getting damaged. But it can help the owner in recovering financially.
1. Personal Property Coverage
Personal property coverage is the most popular coverage out of all. It extends its coverage to certain belongings you own such as electronics and furniture. It not just covers damages but also robbery. Typically a residential insurance policy would have this coverage but it’s always good to double-check.
2. Other Structures Coverage
A property is never one single unit. Your property might have several detached components or units that aren’t attached to the main structure. This includes garages, sheds, and fences.
If these detached structures get destroyed or suffer damages and need repair, the other structure coverage would extend its protection. General insurance coverage might not have this feature but it’s best to include it additionally.
3. Dwelling Coverage
If a covered peril happens to damage any of your attached structures such as a garage or deck, dwelling coverage would pay for your repair costs.
Your overall dwelling coverage limit depends on the area of your house and the total amount it would take to rebuild it. Dwelling coverage may or may not be equal to the current market value of your property.
4. Personal Liability Coverage
Accidents are more common than you think and you might cause one too. If you or a family member of yours happen to damage property or injure someone, you are legally responsible to cover the damages.
Personal liability coverage will help you recover from losses due to the damages that you cause. In worst cases, apart from the repair costs, it will also cover your legal fees and medical expenses.
5. Guest Medical Protection
A guest medical protection plan would help you cover the medical expenses of a guest who endures an injury inside your property. This is an addition to your general insurance which in itself wouldn’t cover the expense.
6. Additional Living Expenses Coverage
A fire or serious damage could make it hard for you to live inside your property for a while. During this period, you may have to stay outside your home which certainly is not cheap. This coverage will cover all your temporary expenses such as hotel bills.
Bonus: Track Your Insurance To Double Your Benefits
Tracking your insurance with automated software remains underrated. With the COI tracker, you can buy the insurance and forget it. It can keep track of your expiry dates, policy coverages and send you alerts if they happen to expire or misalign.
If it sounds promising, read How Can You Track Your Residential Insurance To Best Protect Your Rental Property? to know more about insurance tracking. Our tracking experts would be happy to serve you any time of the day so Schedule A Free Demonstration right now.