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  • Amanda Bird

3 Crucial Types of Insurance Property Investors Must Have

Updated: Nov 23, 2021

If you have just invested money in real estate, there are a few essentials you need to be aware of first. This is especially important if you will be using the property as an income-generating asset. Taking out the right insurance for your rental property is a step in the right direction when it comes to making the most out of your real estate investment.


However, what are the types of investments that are essential for a rental property? If you are unsure, this article is for you! Read on to find out the three most important types of insurance that property investors need to have.


3 Crucial Types of Insurance Property Investors Must Have


As a property investor, you can look at yourself as something of a business owner. To ensure that businesses always stay running, the owners need to take out insurance policies to ensure that they stay open for business even if something bad happens. It is the same for real estate owners.


Property investors that want to turn a profit now instead of later should take time to get insurance for their properties. This way, in case something outside of their control were to happen, they will not completely lose their entire investment.


Here is a list of the most vital types of investment that rental property owners need to consider.


1 - Landlord Insurance


Many neophyte property investors make the mistake of thinking that having building insurance and relying on the insurance provided by the corporation is enough to cover everything they need. In many cases, these insurances are not enough to cover all the possible losses that may happen. Building insurance usually covers the apartment itself. However, landlord insurance also covers the inside of the property, such as flooring and window coverings. Should anything happen to the contents of the property, this type of insurance will help cover the losses.


2 - Income Protection Insurance


Income protection insurance will replace the income that will have to stop because of an accident or untoward incident. Should your property be affected and will need to be put out of commission for some time, this type of insurance will help you stay on your feet until it is operational again. While this type of insurance may not replace the entirety of your income, it should be enough to cover living expenses until you can go back to normal again.


3 - Life Insurance


Life insurance may not seem necessary if you do not have any children. However, if you have real estate properties, it is a must that you take out this type of insurance. Life insurance policies will enable you to decide what happens to your properties should anything happen to you.


Conclusion


Now that you are aware of the types of insurance you need, talking to an insurance agent is the key to ensuring that your assets are protected. Sometimes, insurance may seem a little excessive and unnecessary. However, it is important to realise that you are transferring the risk of possible losses to the insurance company. Should there be anything untoward that happens to your property, your insurance will be there to cover it.


Should you need help figuring out what type of insurance will fit your needs the most, come to New Wave Insurance! We help you find the right insurance for your assets, business and vehicles. Get the best home and contents insurance for your property today!



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