Property insurance provides protection against disasters and other risks that may affect your investment property. Typically these risks include fire, theft, and some weather damage; but policies can be tailored to cover almost anything. Without property insurance you are exposing yourself to undue risk that your investment could suffer diminished returns or be completely wiped out. Price, coverage, and terms of property insurance can vary quite significantly and not all policies are created equal.
A standard policy will typically cover the following:
- Some weather damage-storm, lightening, etc.
- Liability to injuries sustained by tenants/visitors
It will typically not cover:
- Acts of God
- Lost rental income while property is repaired
Any event not explicitly mentioned in the insurance policy