As a property manager, you understand the importance of protecting your property from potential risks. One of the most critical steps to safeguard your investment is to obtain the right insurance coverage. However, with so many insurance options available, it can be challenging to determine which policies offer the best protection. That’s why asking the right questions when consulting with your insurance agent is essential. In this article, we’ll provide the top questions to ask your insurance agent to ensure you have property coverage.
What does a standard homeowners insurance policy cover?
Perhaps the most crucial consideration when purchasing property insurance is to ensure you know what’s covered under your policy. Ask your home insurance agent for a full explanation of the coverages available to you and the exclusions that would apply.
Does the property have the correct type of investment/rental property insurance?
Did you know your homeowners’ insurance policy likely won’t cover a rental property? If you plan to rent your home out, you’ll need a policy explicitly covering rental properties.
How are agents licensed?
This question pertains more to the home insurance agent you’re working with than the insurance itself. For example, is the agent licensed to sell insurance to property managers? Can they offer policies that cover rental properties, or are they limited to conventional homeowners’ insurance?
How are homeowners’ insurance rates calculated?
Your insurer doesn’t have a crystal ball. However, the company does try to base your rates on the coverage limits you choose and the risk of damage in the future. This can include assessing the property’s loss history, physical characteristics, age of structural elements like the roof and foundation, and more.
What will coverage encompass under certain situations?
Your insurance policy should include specific elements, including coverage for your dwelling, other structures on the property, personal property, and liability coverage. Ask your local insurance agent to explain these coverages and your limits.
What should I set my deductible at?
Your deductible must be met before the insurer will pay out on a claim. However, this can also be a vital tool to make your policy more affordable. Higher deductibles usually give you lower premiums, but lower deductibles make insurance more affordable if you need to use it. Find a deductible that isn’t too expensive but doesn’t make it infeasible to file a claim if you need to use your insurance.
How much personal liability protection do I need?
If someone is injured at the home, your liability coverage will pay out. Ask your agent what the upper limits of liability are for your home insurance policy. The higher the limit, the more protection you have from personal injury lawsuits.
How much home insurance do I need?
Many factors go into determining how much insurance you need. This includes the home’s value, but you also need to consider all the items within the home and other structures on the property.
Do I need an umbrella policy?
An umbrella policy offers protection for your home’s equity and even your income and personal savings in the case of a personal injury lawsuit exceeding the liability coverage in your homeowners’ policy. There’s no standard answer here, but if your liability limits don’t cover two years of income, savings, and home equity, consider an umbrella policy.
How does homeowners’ insurance differ from renters’ insurance?
Renters’ insurance covers a renter’s personal belongings. Homeowners’ insurance covers the home and the owner’s possessions. These are some of the most important questions to ask your insurance agent before purchasing coverage for your rental property. The right agent and insurer can make a real difference in your experience. Reach out to us and learn more.
