Property investment is one way to increase your wealth; however, there is always a risk involved. You may be wondering what the potential risks are, and how you can protect yourself against them. Thankfully, there are quite a few ways to reduce the financial risks of property ownership!
Property Owners Liability Insurance
Property owners insurance and property owners liability insurance alike will be able protect you should a disaster strike your house or other real estate property. Property owners liability insurance, in particular, is well worth exploring.
If a tenant, a visitor or a member of the public ends up sustaining injuries on your property, or if an accident damages your property and the property of a third party, the property owner may be held responsible for any associated indemnification fees. Property owners liability insurance will cover any fees stemming from claims, legal costs, and compensation.
A homeowner's property insurance policy may be part of a bundle with a landlord's liability insurance policy. Business owners may be covered under public liability insurance for different types of property claims.
A really good example of a property owners liability insurance claim would be if someone was hurt on their own property by their own fault. If they tripped over a loose step on the front of their house, for example, and the fall caused them to break an arm. If they sought compensation, they would be found legally responsible, and this insurance would cover their legal defense and any compensation they would owe.
Exactly what kind of insurance a property owner will need is reliant on a number of considerations. The property's cost, the nature of the investment and the level of cover needed are all key factors.
Property Owners Liability Insurance: Coverage
When it comes to inclusions and exclusions, elements will vary by policy. It's important to have a comprehensive chat with your insurance broker so that you can see what the policy you're looking into covers.
Risks: What Do Property Owners Need To Know About?
Property and Building Damage
Damaging your property, whether by accident or by malicious intent, can be expensive to repair. Accidents can happen no matter how well-maintained a property is. That can lead to pricey maintenance and repair fees that could burn a hole in one's pocket. Weather can also lead to property damage, alongside wear and tear. In those cases, you will have to foot the repair bill.
Rent Default
A long-term interruption in rental income can be due to rental defaults or the property sitting vacant, but these issues can be managed by hiring a qualified property manager to manage your investment for you. However, even with a qualified property manager, you’ll still want to protect your rental income from disruption by taking precautions against loss or damage of incoming rental payments.
Conclusion
Being a property owner has many advantages, but it also comes with risks. A great way to mitigate that is through property owners liability insurance. Risks to be aware of include property and building damage, as well as rent default.
Trying to find an insurance specialist that can help keep you covered? Reach out to New Wave Insurance today! We can’t wait to help our clients find the right insurance for their vehicles, assets, and business.