Flipping real estate is all the rage these days, but the investors who really see a return on their initial capital are the ones who learn how to run a business that uses them as an income property. Business insurance for income properties can involve a lot of coverage options common to other businesses, including general liability and coverage to protect employees if you have on-site maintenance. One piece of coverage unique to property owners who rent their investments, whether as residential or commercial property, is a policy protecting against loss of rent.
Insurance Against Lost Rent?
As the people at www.rentrescue.com point out, the risks involved with income property include disputes where the tenant stops paying rent on time. While the legal mechanisms for recovery are there, it’s not always feasible to recover that unpaid rent. That’s where a policy protecting you from lack of payment comes into play. It can help offset the months that went unpaid, so you only have to worry about the cost of turning the property and getting it back in the hands of another tenant. That makes it a lot easier to recover from unpleasant situations with tenants whose relationship with you is less than ideal. It’s worth getting a full evaluation of your coverage to make sure you haven’t missed any other areas of risk, too.