Investment property insurance pays for the loss or damage you experience when a problem arises at the property you are investing. Natural disasters, such as earthquakes, fires, or floods can destroy your property and make your milk dry with all the reconstruction costs you have to pay. With investment property insurance, you are saved from these costs.
In addition, investment property insurance also covers your legal costs if you are sued. There may be instances where negligence harms someone while on your property. Investment property insurance will help protect you from these losses.
Type of Investment Property Insurance
There are two basic types of investment property insurance: housing and commercial. Residential investment property insurance covers all types of residential property, such as houses, apartments, condominium units, tenements, and the like. Commercial investment property insurance offers coverage for office units, buildings, centers, malls, and others.Residential Investment Property Insurance
Your home is probably your biggest investment. To protect your home, you need investment property insurance. Residential property investment insurance can offer protection to homeowners from damage caused by hazards, such as fire or earthquake. Residential investment property insurance covers the actual structure of the house and all its contents. Some residential property insurance policies also include structures on the side of the house, such as swimming pools, warehouses, gazebos, terraces, and others.Some residential property investment insurance policies are specifically designed for landlords. This type of residential investment property insurance protects the owner from damage caused by their tenants.
Residential investment property insurance can also provide protection for tenants. In general, residential investment property insurance provides protection for the usual large risks such as damage due to fire or storm, accidental damage or loss, and vandalism. In addition, those who want to buy residential investment property insurance for their rental property can choose to have coverage for the loss of rent or default rent where your tenant stops paying rent.
Commercial Investment Property Insurance
Commercial investment property insurance offers protection from damage or loss. Unlike residential investment property insurance, commercial investment property insurance focuses more on providing protection for the commercial aspects of your property.Let's take the September 11 program for example. The damage caused by the bombings cost billions of dollars. Some office buildings were lost or destroyed during the attack and the costs for reconstruction were very high. If it wasn't for commercial investment property insurance, most of the affected businesses would go bankrupt now. As a result, the property insurance industry has decreased due to the large number of commercial property investment insurance claims submitted. https://bit.ly/2HbKUUW