Who is Responsible for Insuring My Investment Property?

By chrisrath • December 10th, 2010

The question of insurance is one we receive frequently and is not easily answered. Owning a property comes with a series of financial obligations and property insurance is just one of them. The fact that you are renting your property to a third party does not relieve you of your obligation to purchase insurance coverage and the group you are using for property management in Delaware is not responsible for finding insurance for your property.

property insurance

Obtaining Insurance for Your Dwelling

As a property owner, you are responsible for providing insurance on the dwelling, whether it is a home, condo, apartment building, or office. The dwelling insurance policy you purchase will include coverage to repair or replace the building itself but will not extend coverage to the property of your tenants. As a property owner you will also need to purchase general liability coverage to pay for damage or personal injury an individual may sustain while on your property. Insuring against this type of risk is especially important if your property is vacant but you can, in some cases, transfer this responsibility to your tenants.

Requiring Tenant Insurance

As part of your rental agreement you may choose to require that your tenants obtain insurance coverage as well. While the decision to purchase property insurance is not one you need to mandate, all of your tenants should have some sort of liability insurance. Policies written for apartment or condo dwellers always include some form of liability coverage. Businesses can purchase their own general liability coverage separately and should include your organization as an additional insured. Having them do so will ensure that their insurance coverage will pay for your defense if you are sued due to the negligence of your tenant.

Not sure what type of insurance you need to purchase? The organization you are using for property management in Delaware will likely be able to recommend a great local insurance agent. Your Realtor should be able to make recommendations as well. No matter what, make obtaining the proper insurance coverage your top priority. The financial success of your business depends on it.

About the author

chrisrath I enjoy helping people find that right home whenever faced with a relocation situation due to their job or even a major life event. Since I have access to a large inventory of homes for sale and also manage many properties in the northern Delaware region, it is easy for us to help anyone make a smooth transition into this area. I am a licensed Real Estate Agent and also manage my own company Rath Management where we locate, screen, secure, counsel, and communicate with the tenant and the investor throughout the entire leasing process to keep homes filled. Our company also manages maintenance issues, collects and forwards rent monies, and even helps with the dreaded eviction process in the event a tenant does not keep up with the terms. Chris Rath

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