Owning rental properties can be a lucrative source of income and a way to simultaneously build equity in real estate assets and diversify your investments. However, there are also risks associated with being a landlord. Having the right insurance could mean the difference between long-term success and financial insolvency. At Gutman Insurance, we can help you find habitational coverage customized to your properties and business, whether you own a single rental home or an entire development of multi-family housing units.
Managing the Risks of Rental Property Owners
With so much that can wrong, it helps to know your insurance can help make things right. As a property owner, you are responsible for maintaining a property that is safe to live in. If a guest or tenant gets hurt or becomes ill due to property hazards or negligence, you could be liable for the damages, including medical bills and potential legal fees and judgments if you are sued.
Then there are the costs associated with property ownership. The investment you made in your rental property is at constant risk of partial or total loss due to unexpected loss events, such as fire, fallen objects, and vandalism, as well as uncontrollable acts of nature, such as high winds and hail. The results can be disastrous. There are clean-up and remediation bills, as well as the cost of reconstructing or repairing your property. In the meantime, and uninhabitable property will bring in no rental revenue, further hurting your bottom line.
Comprehensive Insurance Solutions for Landlords
Insurance is an asset to your rental business, but it is only as valuable as the coverage it provides. For example, if you have complete protection against property damages but only minimal liability coverage, you leave yourself vulnerable to expensive litigation and other liabilities. At Gutman Insurance, we aim to bring our clients insurance solutions that provide complete habitational coverage protection customized to the needs and risks of landlords. These may include:
General Liability
Virtually all businesses are at risk of liability losses – even those that implement stringent safety and maintenance protocols. General liability insurance helps protect your rental property business against the high cost of protecting yourself in court if you are sued. It can also help cover any medical bills, judgments, or out-of-court settlement costs you may incur as a result of someone’s accusations against you.
Extra Liability (Umbrella)
Even with high general liability limits, some liability expenses can far exceed the available coverage in a typical policy. Examples include court cases in which a victim is awarded hundreds or thousands or even millions of dollars due to the death of a loved one or an injury that causes pain, suffering, high medical bills, and a loss of future income. For those types of scenarios, umbrella insurance can help pay for excess liability damages once you’ve exhausted the limits on your primary coverage. Umbrella policies can provide millions of dollars in extra liability protection. Talk to your agent to determine how much coverage may be right for you.
Workers Compensation Insurance
If you own a multi-unit complex or have a large portfolio of rental properties, you may also have one or more employees that work for your business. Workers compensation insurance is necessary to protect the employees on your payroll, as well as to remain compliant with employer requirements in the State of Wisconsin. This coverage helps to pay for bills related to injuries sustained on the job. It can also help cover a worker’s lost wages while recovering from a work-related illness or injury. Also, workers compensation helps relieve your business of lawsuit risks when a worker files a claim for a loss.
Cyber Liability
You are responsible for protecting the sensitive data you obtain about your tenants, perhaps while running background or credit checks. Cyber liability insurance can help pay for credit monitoring if cybercriminals steal private information from your databases. It may also help cover other related costs, including fines, penalties, and the cost of notifying your tenants and previous tenants of the breach.
Property – Physical Damages
If one of your houses burns to the ground, property damage insurance can help rebuild it from the ground up. This coverage steps in to pay for damages caused by covered events, which may include:
- Fire
- Smoke
- Wind
- Hail
- Lightning
- Vandalism
- Theft
- Explosions
- Fallen objects
- And more
These types of events are unexpected, and often uncontrollable. However, the right insurance can help pay for complete restoration with only minimal out-of-pocket costs for your business.
Loss of Income
If a house becomes uninhabitable due to a covered event, your profits can suffer. Loss of income coverage helps compensate you for the loss of rental income needed to pay your ongoing property expenses, such as utilities, taxes, and more.
Law and Ordinance Coverage
When you get a notice from your city that you are required to make expensive updates or changes to your property to continue renting it out for profit, the costs can add up quickly. Law and ordinance coverage helps pay for expenses related to unexpected changes that are required by law and are beyond your control.
Coverage Quotes for Many Types of Rental Properties
At Gutman Insurance, we offer coverage solutions for a wide range of rental properties. These include:
- Apartment complexes
- Duplexes
- Four-plexes
- Dormitories
- Single-family rent houses
- And more
To get a customized risk assessment, and habitational insurance quotes for your rental property, contact an independent agent at Gutman Insurance today.
