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The Right Coverage
We are protecting our clients’ financial interests to ensure a prosperous future!
FIRST TIME INVESTORS
I have seen this where a current homeowner changes their first purchase into a rental property. There may not be many changes on the mortgage end of things. Still, there are quite a few differences in insurability!
It’s crucial to understand that a typical homeowner policy on a NEW AIRBNB listing will not provide sufficient coverage when you need it most. I’m referring to an Airbnb and a long-term lease, but there are two scenarios where you could be held liable as the property owner. When you have a landlord policy on a rental, they are insuring YOU, the one with the financial interest in the property. YOU are the one with pride of ownership, and you will not want to sue yourself or do any damage. However, the real risk lies in situations involving other individuals, such as renters, their guests, and anyone else involved.
It sounds like a more expensive policy, but it is most often in the price range! Well, most landlord policies, also known as dwelling policies, protect you as the property’s landlord, whether that is tenet damage, loss of rent, or even a lawsuit. So, it is critical to know the difference between the policy types when your buyers are keeping a current home to buy a new one! It could be a secondary home in FL, it could be a property for a family member, or it could be the 10th rental property.
A good agent will take the time to understand the client and their needs and wants, but something is black and white, and I wouldn’t want their purchasing power to decrease by a lousy agent.
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How long after an insurance claim will your insurance premium be high?