What You Should Know About Home Insurance as a New Landlord
We have always heard about insurance, since it is useful in helping us cover the costs of disasters, if any. The importance of insurance cannot be overemphasized, especially for your property as a landlord. There are certain things to look into when getting an insurance, and one of them is ensuring that you have a good credit rating. With a good credit rating, you can get a mortgage at a good rate and also save money on your homeowner’s insurance.
Your home insurance claims-filing history should also be checked, and remember that there won’t be a loss history report for you if you haven’t filed any insurance claims in the past five years. Having a better claim record ensures that you pay less for insurance, so it is very important. It can also help you in selling your current home for more profit.
Landlords are encouraged to make renters have renter’s insurance, since the landlord’s insurance won’t cover their personal property. Also, when hunting for homes, remember that features of the home and other factors can make your insurance rates increase drastically or even reduce it. these features are many, and you should check them out properly. The type of materials used in construction, the age of the house, and the roof and home condition are some factors that would influence your insurance rates. There are still more, but one factor you shouldn’t overlook is the location. The closer a home is to the coast, the more expensive it becomes, since hurricanes, wind and other related damages will greatly affect closer homes than those not close to the coast.
Insurance differ from property to property and it depends on the property you bid on, so ensure co do some checks, go through the loss history report of the house, inspect the house, and also seek professional advice to find out if the house will qualify for insurance and at what rate.
After making your choice and are ready to purchase the property, ensure that you get the best insurance coverage at the lowest price as possible. One way to achieve this is by taking the highest deductible, because high deductibles ensures lower premium. You should also make enquiries about available discounts.
As you go about your insurance, note that standard homeowner’s insurance policies don’t cover flood and earthquake damages, and you need to pay extra premium for it. These natural disasters are covered through the government’s National Flood Insurance Program (NFIP).
Conclusion
Home insurance is very necessary because there are some future events that may occur and could leave you struggling, but with a home insurance, you are safe. After successfully purchasing your new home, you should carryout proper maintenance and keep your insurance updated by disclosing to your insurer changes you have made, things you have added and overall improvement of your home. You should also let your insurer know when you have major changes in your life like when you get married. With this, you will make the most out of your insurance coverage, ensuring that you are not over-insured or even under-insured.
