How to Prequalify Real Estate Prospects
If you’re working to build an investment portfolio, it’s likely you’re familiar with a variety of types of insurance. From property coverage to liability coverage to everything in between, you want to make sure you and your property are both covered. However, it can be hard to decide what needs coverage and what doesn’t — after all, you didn’t start investing in real estate to get tied up in red tape right? Luckily, it doesn’t have to be as hard as you think. The biggest priority? To protect your investment.
Enter: real estate investor insurance.
What is real estate investor insurance?
Real estate investor insurance — sometimes called “landlord’s insurance” — is insurance coverage that applies to rental properties. It helps investors, landlords, property managers, and more when it comes to investment properties, especially when those real estate investments have tenants. There are different types of investor insurance for different types of investments, whether it’s an office building that needs a specific type of coverage or a vacant property that needs another.
Like with most types of property insurance coverage, there are several considerations to keep in mind, as there are typically different risks to the investor in various types of properties. Investor insurance can cover property, liability, or both, and would typically have options to cover the following:
- Property damage/dwelling coverage: This coverage can help to cover against property damage (think: falling trees, etc.) that interfere with your property, including fire, hail, wind damage, storm damage, etc.
- Landlord property coverage: This may provide coverage for things like loss of rent, burglary, or even needed building code repairs.
- Liability coverage: This coverage could cover your interests if someone is injured on your property.
Who needs investor insurance?
If you’re a real estate investor, you probably need investor insurance. Regardless of whether or not you’re sitting on a vacant property or have tenants renting out your property, your coverage is important. By investing in investor insurance coverage, you may be able to prevent or mitigate the risk that comes with being an investor — and that’s a big deal. Plus, like with most insurance coverage, you can work with a provider that helps you create the best coverage portfolio for you and your properties. The right insurance provider will help to build out custom coverage, which may give you confidence to trust that you’re just paying for what you need.
At VRM Real Estate Alliance, our unique medley of partners and vendors is at your fingertips. From lending advice to real estate valuation, our trusted partners know real estate — and are here to help. Find out more here.