A rental property is a valuable asset. It can be a great source of passive income for many years if you choose tenants with care. Buying the right insurance policy ahead of time can also help you save money while avoiding potentially devastating losses.
What is Umbrella Insurance for a Rental Property?
Umbrella insurance isn’t meant to be a standalone policy. Instead, it kicks in once you reach the liability limit of another policy. This ensures you’re not out of luck if you need to settle a lawsuit or pay a judgment.
Umbrella insurance covers a range of incidents. It compensates third parties for injuries that occur on your property. If someone comes to the home and their property is damaged on your premises, umbrella coverage will pay the person for the loss. Examples include damage to power tools you rented from Home Depot and stored on the property, a mailman slipping on the house’s front steps, or a tenant’s child accidentally throwing a ball at a delivery truck’s windshield. However, bear in mind that umbrella insurance doesn’t cover intentional damage by a tenant. It also doesn’t cover injuries you sustain while visiting your property or any form of damage to your property, even if it is accidental.
Get Expert Insurance Advice from Asheville Insurance Center
Umbrella insurance for a rental property offers ample protection in the event of a lawsuit. However, it’s not the only form of insurance you’ll need. Asheville Insurance Center offers Asheville, NC property owners expert advice to make it easy for any landlord to pick the best policies for a property. Get in touch with us to learn more or find out about specific policy options.
