Insurance
DO YOU NEED INSURANCE TO PROTECT YOUR INVESTMENT?
The decision to purchase an insurance policy depends on each person’s risk tolerance. Many people underestimate the importance of insurance until a loss occurs. As real estate professionals, it’s our duty to advise clients on the importance of having a policy to protect their investment.
WHAT DOES INSURANCE PROTECT ME FROM?
There are various types of policies, but in real estate, the most important coverages typically include:
Internal and/or external structure of the property
Personal belongings inside the property
Liability for accidents occurring on the property
Damage to neighboring units (especially in condos)
WHAT KIND OF INSURANCE DO I NEED?
Not all owners need or seek the same coverage. It’s essential to understand your policy’s coverage, restrictions, and exclusions based on your specific risks.
Key factors to determine the coverage you need:
Use of the Property: investment, rental, vacation, or primary residence
Liability: protection from legal actions and medical expenses
Contents and Interiors: flooring, walls, ceilings, wiring, A/C units, appliances
Location:
Hurricane zones (often optional)
Flood zones (required by law and lenders)
Property Type:
Houses and townhomes: need structural, flood, hazard, and hurricane protection
Condos: usually have a master policy covering structure and common areas
Number of Properties:
Owners of multiple properties may opt for umbrella insurance to reduce costs
WAYS TO REDUCE INSURANCE COSTS
Increase your deductible: You can lower your premium by choosing a higher deductible, which is the amount you pay before the insurer covers the rest. Just be sure to have that amount available in case of a claim.
Install a security system: Insurance companies offer discounts for alarm systems.
Pay for minor claims out of pocket: Frequent claims can lead to higher premiums.
Always seek advice from an insurance broker when purchasing a property—or even after—to evaluate or improve your current coverage.
Summary:
Insurance protects your property from damage, liability, and loss. Coverage depends on usage, type, and location. Save by raising deductibles, adding security systems, and avoiding frequent small claims.
