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Find Out More Information on Key Aspects of Landlord Insurance

Dustin Edwards • May 01, 2021

Ask Questions of Your Insurance Agent to Find the Best Policy

Landlord Insurance
Maybe it’s because we manage 100’s of properties throughout Long Beach or maybe it is because we too own rental properties in Long Beach, whatever the reason we have seen more advertising for landlord insurance lately. Landlord insurance isn’t as commonly shopped for as your home and auto policies which made us think we should highlight a few areas for you to explore with your landlord insurance.

Liability Protection
When one thinks of landlord insurance it isn’t likely you are first thinking of liability protection; however, we would challenge you to consider this as a top priority. While it might be unpleasant to talk about the legal coverage with your insurance agent, it would certainly be more unpleasant to find out when you really need it that you don’t have the coverage you thought you had.  

Consider asking a few questions such as:
  • What types of situations have you encountered where it has been necessary for the insurance carrier to help with legal proceedings?
  • What have you found that the insurance company most often settles at? (Note: While this may get an odd look from your insurance agent, remember most legal complaints don’t go to trial, they settle.)
  • Do you recommend I carry an umbrella policy in addition to my liability coverage? How often and in what scenarios have you seen the umbrella used in addition to the liability protection?
An insurance agent is there for far more than just “what price is my policy?” and while the liability items aren’t fun to talk about it is important to get their insight and experience when you aren’t under the pressure of a real situation.

Loss of Rental Income
If a disaster should strike you could still have a mortgage to pay...and even if you don’t there are still ongoing expenses with the property (insurance, property taxes, etc.). Policies can call it different items, i.e it can sometimes be called “fair value rental coverage”, but regardless of the name it is important to understand what it will cover. For example ask your insurance agent the following:
  • How much rent will I receive under the policy if a disaster strikes?
  • How long will I receive that payment?
  • How long will it be until I receive the first payment?
The last question is key as some companies can take months before you get paid and that means you will need to have your own reserves in place to cover the unthinkable.  

Rebuilding Costs
When most people think of insurance related to properties they think of “what happens in a fire?” and that is a perfectly valid concern. For your rental property consider the following:
  • The year built of the property - This can certainly be a discussion point with your insurance agent, but consider if your property was built in the 1940’s (common for properties in Long Beach) and then ask yourself what has been upgraded since then when it comes to core systems? Is the plumbing copper or Pex? Is the water heater tankless system now? While these might seem trivial now, in the case of a disaster bringing everything up to current code (to be in compliance with local building codes) could make it so your policy might not cover all of the repairs. Ask your insurance agent to understand what might be needed to ensure you can bring the property current if the worst case should happen.
  • Level of upgrades - Even the nice rentals usually don’t have the same quality of materials as your primary residence. After all you can get great flooring for rental at ~$3 a foot while you might splurge for the flooring you really love for your own home that could be north of $10 a foot. Take careful note of what is in your rental and discuss those with your insurance agent as well.

What Disasters Are Covered?
Understanding what scenarios are covered is important to avoid surprises. One common exclusion, in regards to natural disasters, is that of earthquake coverage. This is generally a separate policy and is one that you should ask your insurance agent about. While we know the likelihood of an earthquake is low, remember, you have an obligation to your renter, not just your property so it is important to have a plan in place to understand how you can protect your renter and your property.

When you want to find out more about what we would recommend asking your insurance agent about we invite you to call us today at (562) 888-0247 or you can even fill out our Owner Application and we can develop a custom rental analysis for your property (or properties).

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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