Investment Property Insurance
Are you a landlord or real estate investor? Is your home or other property you own undergoing renovation or reconstruction? Do you own a vacant house or a seasonal residence? If so, it is important to have the right kind of insurance to be sure you are properly protected.
Dwelling Insurance
Dwelling insurance is commonly taken out to protect a property that is not the primary residence, such as an investment property or a seasonal or rental home. The difference between a dwelling policy and a standard home owner policy is that dwelling insurance covers the building(s) on the property and any any personal property owned by the landlord such as appliances and furniture. Loss of rental income is also an important coverage provided by a dwelling policy.
Unlike a homeowner policy, dwelling insurance will not provide liability coverage for damages or injuries that might be sustained by others on the property.
Dwelling insurance provides reasonable property coverage at a lower premium for a second home or rental property.
Builder's Risk Insurance
Before you take out that wall, add a room or do any other substantial renovation to your home, it's important to know that if your reconstruction work results in damage to the structure or contents, your home owner insurance may not cover it. Most home owner policies specifically exclude coverage for damage done during renovations.
Builder's Risk insurance is specifically designed to provide coverage during the period when a home is undergoing renovation. Coverage is usually for a matter of months, and premiums are normally higher than a standard home owner policy. The Builder's Risk policy might also cover the building materials stored on site for the renovation work.
If you hire a contractor, be sure the company carries insurance adaquate to cover loss in case of damage to your home.
Vacant Homes
Current housing market conditions mean that it sometimes takes longer to sell a home that is on the market. Also, there are more homes that are unoccupied due to foreclosure.
Insurance companies, traditionally, do not like to insure vacant homes because such properties carry a greater risk of damage from such occurances as fire, water, vandalism and theft. Many insurors will end coverage for any home that is vacant for more than 30 days.
However, insurance for a vacant property can be obtained. Some of the major companies offer it, as do carriers that specialize in "surplus lines". Insurors will often offer discounts on the premium if the property has a working central alarm system, smoke detectors, dead-bolt locks. It also helps to have someone regularly check on the premises.
Whether you are a landlord, an investor or just tackling a renovation project, we at LandCastle Insurance services can help you find the insurance coverage you need, at a competitive price. Contact us directly for consultation with our investment property insurance specialists.