Property Insurance: Which one is right for your investment?

It’s true that investing in the real estate market is one of the safest ways to increase your patrimony over time. However, your property can also suffer damages when you least expect it. And if you’re not ready to face these events, you could lose money, or worse, your initial investment.

Before you start renting, working, or living in your new home, you should acquire an appropriate insurance for your case. Today, we present 4 types of Property Insurance to help you make the right decision.

4 Property Insurance types especially necessary in Florida

●   Homeowner’s insurance: are you moving to a new place or investing in a second home? Everything’s not ready until you purchase home insurance. This is the plan with the widest coverage in the market; however, it doesn’t cover floods and other natural disasters, which is a problem if you live near the coast.

This insurance includes coverage for large damages, accidents that occur at home, replacement of damaged items, and it has a low deductible compared to the cost of repair.

●     Landlord insurance: it’s a versatile plan whose budget is deducted from your taxes. It covers any kind of damages to the property caused by accidents or tenants. And it also includes the cost of a tenant defaulting on rent.

On the other hand, landlord insurance is expensive, especially if you use it in your first investment, and it doesn’t extend the protection to items or furniture inside the building.

●     Flood insurance: extremely useful if your property is located near a body of water. It offers protection for total loss, damages to physical structures, and replacement of lost items; however, it doesn’t cover living expenses. You may complement this plan with natural disaster insurance.

●     Commercial property insurance: if you are starting a business, you must purchase a plan to protect you from losing money. Florida is a very competitive market, both prosperous and risky. That’s why you need to run your project in the safest way possible.

Business insurance protects companies from unexpected damages to the physical structures and keeps you away from bankruptcy after disasters.  It also has cons, because this plan involves an extra cost that might be difficult to afford if the business is new in the market.

At Gables Riches we can help you protect your investment from the unexpected, with our Property Insurance services. Contact us.