Protect Your Rental Property with Umbrella Insurance
February 8, 2023
Safeguarding your rental property as a landlord is essential for ensuring a profitable and successful venture. Fortunately, with umbrella insurance, property owners can be provided with additional liability coverage in the event of an accident. This coverage is especially important for individuals with rental properties due to their high-risk nature.
This blog post will go over the dangers of not getting umbrella insurance, what it generally covers, and how much it typically costs. Let’s get started!
The Risks of Not Having Umbrella Insurance for Your Rental Property
Unfortunately, accidents and mishaps can happen at any time, exposing landlords to endless liability risks. For instance, if a tenant or visitor is badly injured on the property, landlords could be held liable. Your basic rental property insurance policy provides coverage in a variety of situations, but it may not always be sufficient to cover everything. As a landlord, you may be responsible for a considerable portion of legal and medical expenses. Landlords who forego umbrella insurance risk the possibility of going bankrupt due to such expenses.
What Does Umbrella Insurance Typically Cover?
Umbrella insurance protects landlords by providing coverage for a variety of liabilities like property damage, injuries, and lawsuits.
This form of insurance usually covers:
- Liability claims that exceed the coverage limits of your rental property insurance policy
- Legal fees and settlements when involved in a lawsuit
- Damage to property or personal belongings
- Incidents that occur off-site but are related to your rental property business
Average Cost of Umbrella Insurance
The cost of umbrella insurance is determined by a number of factors, such as the size of your rental property, its location, the amount of protection it needs, and so forth. Umbrella insurance costs roughly $150 to $300 per year for one million of coverage. The cost however goes up when more coverage is required.
To acquire adequate coverage, it’s best to seek assistance from a qualified insurance agency. Fortunately, at Property Insurance HQ, our team of professionals has the ability to shop and compare rates, ensuring customers are receiving the best possible quote.
Bottom Line
In conclusion, landlords who want to safeguard their rental properties should consider investing in umbrella insurance. With its wide range of coverage options, property owners may rest assured knowing that they’re protected against a wide variety of risks. So, despite the extra investment, umbrella insurance is well worth it for the security and peace of mind it provides.
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