Insurance

Insurance is an essential part of life. It helps to protect people and property in the event of an accident or a disaster. However, it can often be difficult to know what types of insurance are needed, how much insurance to get, and where to turn with questions. Below are several types of insurance, along with tips on choosing the right insurance agency – one that provides the best insurance at good prices.

Real Estate Owned Insurance in Colorado

This is a special type of insurance that lenders, trustees, investors, and servicers can get for properties in deed, in lien, or that are in foreclosure. This type of coverage could be used for real estate that has been foreclosed upon, including land, townhomes, detached houses, and condos. It could also be used for vacant homes or homes that are currently occupied by tenants. As with other types of coverage, the deductible ranges often vary.

Real estate owned insurance protects the property. Typically, policies will cover a range of scenarios such as fire, wind, hail, lightning, vandalism, and premises coverage. However, it will not cover theft. It is important to keep in mind that, like other insurance policies, different carriers will have their own distinct coverage. These types of coverages could include hazards, general liability, etc.

Landlord Protection Insurance in Colorado

Tenant occupied insurance in Denver is important for real estate investors to have, as well. If they will be renting out a home, they will want to be sure that they have this special type of insurance. Typically, there will be two different types of coverage in the policy. It is important to know and understand what each of these two types of coverage provides.

First, there is property protection for the landlords. This type of insurance provides coverage for the physical property that is being rented by a tenant. The property coverage will be for the physical home if there is damage that needs repair or replacement. It would include damage caused by wind, lightning, and fire, for example. It would not cover floods or earthquakes.

The coverage will include more than just the dwelling, and this is where it differs from standard dwelling insurance. Landlord protection insurance in Denver also covers the equipment and tools used to maintain the rental, as well as additional structures.

Some of the items that might be considered as part of the equipment stored at the property include lawn mowers and snow blowers. The caveat is that the items covered must be used in the service and maintenance of the rental property. The policy would not include miscellaneous items left at the property. The additional structures that would be covered include detached garages, fences, and sheds.

The cost for the insurance, along with the limits and deductibles, will vary from one provider to the next. When choosing this type of coverage, it is important to consider these factors to be sure the best insurance is chosen.

The next type of coverage that falls under landlord protection insurance in Denver is liability. Liability protection will cover legal expenses and medical bills if someone is injured on the rental property and the landlord is found to be at fault for the injury. This is an important part of tenant-occupied insurance in Denver, as it helps protect the property owners and their assets in the event of an accident on the rental property.

If someone were to slip and fall and have an injury, the landlord could be blamed for neglect. Faulty stair railings, broken floorboards, etc., would likely mean that the landlord is to blame. This is the type of damage that should be fixed to ensure the home is safe for those occupying the space. If the landlord does not have liability coverage, they would have to pay all of the expenses out of pocket.

Insurance Doesn’t Cover Everything

Owners need to know that even with great insurance, some things will not be covered. This would include shared property, equipment breakdowns, and maintenance for the equipment. If the landlord includes a washer and dryer in the home, for example, insurance will not cover it if it breaks down. The owner would be responsible for the repair or replacement.

Additionally, the insurance doesn’t cover items that belong to the tenant. Tenants should choose to buy a renter’s insurance policy to ensure their items have coverage. This will help them to get items replaced if they have been damaged in a fire, for example. In some cases, landlords might require that the tenant show proof that they have renter’s insurance.

Choose an Independent Insurance Agent

Often, people choose an insurance provider based solely on branding without truly looking into what the company can offer. This could turn out to be a costly mistake, though. When going directly to a single provider for insurance without taking the time to sort through all of the options, owners could be paying far more for their property insurance than they should. They may also not have as much coverage as they think, or they may have more than they truly need.

Instead, it tends to be a better option to work with an independent insurance agent. The agents that have familiarity with the type of coverage needed, as well as the local area, can help to ensure that the best coverage is found.

They can sort through all of the different options that are available from a range of carriers and present homeowners with the best solutions for their needs. It tends to be more efficient, and it could help to save money. Whether looking for landlord protection insurance in Denver or real estate owner insurance in Colorado’s other areas, consider working with an independent agent.

These are just a few of the most common types of insurance on the market. It’s important to have a full understanding of the coverage involved before making a decision to purchase any type of insurance policy.  Given all of the options available, it makes sense for property owners to work with a qualified agent to find the right type of coverage for each situation – and an ample amount of it, too.

Those who own investment properties need to have dwelling property insurance in Colorado Springs. Another term used for this is dwelling coverage, and it is typically part of a homeowner’s insurance policy. This specific type of coverage is used as a means to help pay for repairing or rebuilding the physical structure of the property as long as the damage was caused by a hazard that’s covered within the policy.

Know What Is and Is Not Covered

When choosing dwelling property insurance, it is important to realize that plans from various companies could provide different coverage. Those who are seeking insurance coverage will find that things such as fire and smoke, hail, vandalism, explosions, damage from a vehicle, falling objects, etc., will generally be covered by this type of insurance policy.

Most of the time, floods and earthquakes will not be covered. Sewer backups, which many would assume to be in the policy, may not be covered either. Additionally, certain items on the property that are not part of the dwelling will not be covered. This might include a fence, shed, or a detached garage. An attached garage, on the other hand, will likely be covered.

Nothing should ever be taken for granted. Instead, it is important to go through the entire policy item by item to determine what is and is not covered. This should be done before opting to buy the insurance policy. In the event of damage to the dwelling that is covered by the policy, the claims payment could help to cover the costs of repairing or rebuilding.

Why is Dwelling Property Insurance in Colorado Springs Necessary?

Dwelling property insurance is part of the homeowner’s coverage. When someone is paying a mortgage on a home, the bank or other entity that financed the home needs to make sure the investment is protected. They will require that the owners have a homeowner’s insurance policy in place prior to closing on the sale of the house. Everyone who owns a home will need to have dwelling coverage.

How Much Dwelling Coverage is Needed?

The answer to this question can vary from one home to the next. One of the common mistakes made when buying insurance is using the market value or assessed value of the property to determine the amount of coverage to buy. This is not the same as the replacement cost. The replacement cost coverage, or RCC, is the actual cost that would need to be paid when repairing or rebuilding the home with materials that are similar in quality and kind without depreciation deductions. Typically, owners will want to use the RCC when determining how much coverage they will need.

Determining this number can be difficult. It would require knowing what builders charge per square foot in the Colorado Springs area. This would then need to be multiplied by the number of square feet in the home. Owners also have to think about the other details of the home. For example, does it have special trim? Are there hardwood floors? What are the fixtures like? All the little details of the dwelling can change the overall RCC value. It can be difficult for many owners to determine on their own.

Rather than attempting to figure out the RCC value by themselves, homeowners should instead work with an insurance agent to discuss the replacement cost value of the home. This will make it easier to then choose the right amount of coverage for the property.

Why Choose Landlord Protection Insurance in Colorado Springs?

Those who own rental properties will likely need to have more than just coverage on the dwelling. They will also need to have landlord protection insurance in Colorado Springs. These policies are for those who are renting out investment properties they own. There will generally be two different types of coverage, and both should be used.

First, there is property protection insurance. This part of the policy will help cover any damages to the physical property when it is rented out, including the dwelling. It will also include equipment that is kept at the property to maintain it. The coverage would include not only the dwelling but also detached garages, lawn mowers, fences, etc.

Second, there is liability protection insurance. This part of the policy will help pay for the legal expenses and another person’s medical bills if someone is injured on the property where the landlord has been deemed responsible for that injury.

Reasons to Choose a Quality Independent Insurance Agent

Going directly to an insurance company to speak with an agent is often not a good idea. Those agents have an agenda to sell the policies their company provides, even though they may not always be in the best interest of the property owner. This means that they may not be able to provide all the coverage needed, and they may not have the best or most cost-effective coverages.

Instead, when shopping for dwelling property insurance in Colorado Springs, working with an independent insurance agent tends to be a better option. They work to find the best coverage for dwelling property insurance and landlord protection insurance in Colorado Springs. Working with someone local can also help ensure that they understand local needs. They often have the know-how to ensure that the correct type and the right amount of insurance are purchased.

An independent agent can also explain the other types of insurance that might be needed, whether the owner has a residential property or an investment property. Knowing and understanding all the options that are available will make it easier to get the right coverage for each type of property.

Quality Insurance Provides Peace of Mind

A home is a major investment and is likely the biggest investment that most people make in a lifetime. Not having enough insurance coverage can lead to many financial problems. Taking the time to find quality coverage provides peace of mind for the owners and protects this valuable asset at the same time.

Property insurance is vital. It protects against the threat of fire, wind, and more. It also covers other things, such as expensive appliances that might be damaged in a covered event. That protection is essential for lenders and property investors, but it can be challenging to secure. Real estate owned insurance for Colorado property investors can offer the benefits needed.

What Is Real Estate Owned Insurance?

Real estate owned insurance is available to both real estate investors and lenders. It provides a way to protect a property from threats separate from homeowner’s insurance. It may also be called landlord protection insurance or tenant occupied insurance.

While landlord protection insurance in Colorado helps offset risk, it is not a one-size-fits-all solution. Like other types of insurance, landlord protection insurance in Denver should be customized to the investor/property owner’s unique needs, goals, and budget. Property investors will find several different levels of coverage available, including:

• Basic Dwelling Property Insurance – This is the bottom-most level and offers protection for the structure itself, as well as limited contents, such as appliances and other landlord-owned items. It usually does not cover other structures and only protects against a limited list of named perils through cash-value reimbursement.

• Broad Dwelling Property Insurance – The second tier of tenant-occupied insurance for Denver landlords covers a little more than the base level. Instead of cash-value reimbursement, this level offers replacement-cost reimbursement for named perils. This helps landlords save additional money if forced to file a claim.

• Special Dwelling Property Insurance – The final tier is also the most comprehensive. It offers replacement-cost reimbursement similar to the second tier, but it does not limit reimbursement only to named perils in the policy. This is the better option for investors in need of the most robust protection for their properties.

Typical Coverages within Landlord Protection Insurance in Colorado

While every policy will vary based on a broad range of factors, most policies include specific areas of coverage. These may include the following, although real estate investors are urged to work with their insurance agents to customize their policy to meet their specific needs and expectations.

• Structure – All policies for tenant occupied insurance in Denver offer coverage of the structure itself. Note that structural coverage usually extends to landlord-owned appliances. However, the types of appliances covered will vary from insurer to insurer and policy to policy.

• Liability – Most policies for landlord protection insurance in Colorado should include personal liability coverage that protects the landlord against being sued if a tenant or guest is injured or suffers property damage. However, not all policies include this coverage, and all policies vary in terms of the coverage amount. It may be necessary to add (or increase) this coverage with a rider.

• Landlord-Owned Property – Some landlord protection insurance in Denver covers additional landlord-owned items left at the property, whether for tenant use or other reasons. If appliances are not protected under dwelling coverage, they may be covered here.

• Loss of Income Coverage – Real estate owned insurance in Colorado may cover loss of income if tenants are forced to vacate a property due to a covered event. However, this is not true for all policies and may need to be added as a rider.

The Differences in Coverage with Varying Property Dispositions

Every policy for real estate owned insurance in Colorado is different because each property and situation is different. What’s more, different situations and property dispositions will also affect coverage, and some situations may require additional coverage not included with basic landlord protection insurance for Denver area property investors.

Vacant Home Coverage

This is a good example of a type of coverage that is not often included with basic landlord protection insurance. Rental properties can be vacant for any number of reasons – being in between tenants, for instance. However, vacant properties are also at greater risk of certain types of risks, including break-ins and theft. Vacant home coverage provides protection and peace of mind for property owners who need to file a claim to handle damage or repairs ranging from door repair to replacing broken windows or damaged locks.

Vandalism Protection

Vandalism is a significant risk for rental properties, particularly those that sit vacant for weeks or months. Graffiti is the prime example here. It can cost tens of thousands of dollars to remove or cover over graffitied walls, siding, doors, windows, and other elements in the home. Vandalism protection provides property investors with the knowledge that even if the rental is vandalized, they have recourse available to them.

Unnamed Perils and Uncovered Threats

As mentioned, landlord protection insurance for Denver area property investors can vary dramatically in terms of what the policy actually covers. It is important for property investors/landlords to delve into the named perils and threats, identify any potential threats not named that could endanger their investment, and find protection. For instance, flood insurance is often not included with real estate owned insurance in Colorado and must be purchased as a rider. The same is true for other natural disasters and specific threats. Working with an experienced insurance agent will help ensure that investors/landlords can customize the level of protection they receive from property insurance policies.

Finding the Right Level of Protection

Real estate can be an incredible investment, and rental fees offer a fairly reliable, ongoing stream of income. However, that investment must be protected against threats ranging from fires and floods to vandalism. Real estate owned insurance in Colorado offers the means to achieve that protection, but it is not as simple as purchasing an insurance policy out of the box.

Care must be taken to ensure that the policy fits the investor’s needs and budget, as well as the threats to which the property will be exposed. Ideally, investors will work with a knowledgeable insurance agent to compare offerings from different insurers, discuss various riders, and make an informed decision when it comes to purchasing insurance.

Real estate investments offer plenty of benefits. They allow investors to build their wealth and provide homes for those who choose not to pursue homeownership on their own. When it comes to rental and investment property, too many owners fail to understand the need for protection in the form of dwelling property insurance in Colorado Springs.

What Is Dwelling Property Insurance?

Insurance plays a critical role in modern society. It provides the necessary protection against loss for automobiles, health, property, and life. Insurance may provide a small amount of money for children or other beneficiaries at the time of death. However, dwelling property insurance is a bit different, and many people are unfamiliar with the name.

Dwelling property insurance is a specially designed product that covers the structure of a property only – it does not protect the surrounding property, nor does it protect the contents of the structure. This sets it apart from conventional homeowner’s insurance, which covers the contents of a home and sometimes covers other structures on the same property.

Why Is Dwelling Property Insurance Important?

This type of insurance is important for safeguarding real estate investors’ assets. This is why it is also known as landlord protection insurance. Colorado Springs property investors require this protection to safeguard against damage from a wide range of “named perils,” including fire and storm damage.

Won’t the tenant’s renters insurance cover the investment property? No, it will not. Renters insurance is specially designed to cover just the contents of the property. Moreover, it only covers the contents that belong to the renter, so if things like the oven, stovetop, water heater, and other appliances are provided by a landlord, those items will not be covered by the renter’s insurance policy.

How Does Landlord Protection Insurance in Colorado Springs Differ from Homeowners Insurance?

Landlord protection insurance and homeowners insurance are similar, but they are not the same. Both will cover the structure itself, but homeowners insurance covers the contents of the home, as well as other things like the garage, as mentioned previously. However, there are other critical differences to understand here.

Liability

One key consideration with dwelling property insurance in Colorado Springs versus homeowners insurance is liability coverage. Dwelling property insurance does not cover the property owner’s liability in the event that someone is injured on the property or their property is damaged during a visit to the property. Securing this coverage requires an additional rider. On the other hand, homeowners insurance does cover liability in these instances.

Do landlords require liability insurance on rental properties? Yes, they do. Standard property dwelling insurance policies may not offer liability protection, but policies designed specifically for landlords may include this coverage (landlord protection insurance for Colorado Springs real estate investors). Landlords should work with their insurance agent to understand their needs in terms of liability coverage and find a policy that offers that.

Additional Structures

As mentioned, homeowners insurance covers other structures on the property, such as garages and sheds. Dwelling property insurance usually does not – it applies only to the primary structure. What should landlords do? Considering that many investment properties in and around Colorado Springs include additional structures, finding coverage for those structures is important.

Landlord protection insurance offers the additional coverage necessary. However, landlords may also be able to purchase a separate rider and add it to their dwelling property insurance, although this may actually cost more than buying landlord-specific coverage. Again, working with an experienced insurance agent can help ensure that landlords find the right level and type of protection for their unique needs.

Appliances

Most rental properties come furnished with essential appliances renters will need, such as an oven, a furnace, and a water heater. However, those appliances belong to the landlord, not to the renter, so what coverage is offered here? In most cases, dwelling coverage will also cover specific, landlord-owned appliances, while it will not cover other contents of the dwelling. With that being said, this may not be true of all dwelling property policies. Landlords should verify with their insurance agent which appliances and other contents are covered and which are not.

Loss of Rental Income

Landlords depend on their investment properties to generate income. Without that stream of income, they may face challenges in meeting their financial obligations. Dwelling property insurance in Colorado Springs may not cover loss of rental income. Landlords should verify with their insurance agent whether rent loss insurance is included with their policy. In some cases, it will need to be added as a rider, even with specific landlord protection insurance policies.

Building Code Coverage

Landlords are required to ensure that their rental properties are up to code. However, codes change over time, and it can be challenging to keep up with the changes. The challenge here is that if a property is damaged and is not within the current building code, it will need to be updated before it can be rented out once more. That can be costly. Landlords should consider building code coverage for their properties, which is usually only available as an optional rider.

Non-Occupied Dwelling Endorsement

What happens if a property is damaged when it is not occupied by a renter? In some cases, dwelling property insurance and even more specific landlord protection insurance may not provide any coverage, particularly if the property has been vacant for 30 days or longer. A non-occupied dwelling endorsement provides peace of mind for landlords so that if damage occurs when the property is vacant, they will be covered.

Choosing the Right Insurance

Dwelling property insurance for Colorado Springs real estate investors is an important consideration. However, it may not offer all the protection needed. Real estate investors should work with their insurance agent to determine exactly what coverage is included and then work to customize their landlord protection insurance to their budget, needs, and situation.

Anyone who rents out a home in Colorado Springs should be aware of what landlord protection insurance is. It’s a special type of insurance that can be purchased by someone who rents out a property that they own. Most of the time, this insurance has two separate levels of coverage: liability protection and property protection. Each of these types of coverage is designed to protect a landlord from suffering financial losses while operating the business.

Property Protection for Landlords

With landlord protection insurance, the property protection is what helps cover the actual physical property of the home that is being rented to someone else. This can include the dwelling itself but also all of the equipment kept on-site to maintain it and keep it in excellent condition. Some of the things that are typically covered include:

• The Property – Dwelling property insurance in Colorado Springs is what covers any repairs that need to be made to a rented apartment, condo, or home if it is a covered loss. Some of the most common examples include damage by hail, fire, lightning, or wind.

• Additional Structures – The policy will typically also cover repairs to any detached structures located at the rental property. This includes things like fences, detached garages, and sheds as long as the losses are covered under the policy.

• Equipment and Tools Use to Service the Rental – Items like snowblowers and lawnmowers that are left at the rental property are often also covered if they are damaged in one of the situations listed above. However, these items have to be used to maintain and service the rental. If someone has personal items like a radio or a bike at the rental, those things are not likely to be covered.

As with other types of insurance, all of the coverage options above are subject to limits and deductibles. All of these things will be spelled out in the paperwork for the landlord protection insurance policy. The deductible is the amount a person needs to pay under a covered loss before the insurance will start to take over. The limit is the maximum amount that the policy will pay after a loss occurs.

Every insurance policy is different so it’s important to look at the deductibles and limits when choosing one. In some cases, individuals can set their own limits and deductible amounts.

Liability Protection for Landlords

In addition to property protection, most dwelling property insurance in Colorado Springs also has liability protection. This is an entirely different type of coverage that is used if an owner needs to pay legal expenses or medical bills in a case where someone is injured at the rental property and the landlord is considered to be responsible.

As an example, if a tenant falls going down the stairs at the rental property, a court might determine that the landlord failed to maintain the railing or stairs. In this case, the landlord would be responsible for legal, medical, and other costs related to the fall that occurred.

Having top-notch landlord protection insurance assists with paying those expenses up to the limit of the policy. In many cases, there is no deductible to pay for liability claims.

What Isn’t Covered Through Landlord Insurance

Many of the expenses that someone incurs as a landlord will be covered with landlord protection insurance, but not all of them will. Most policies are going to have exclusions that will not be covered. As mentioned earlier, this can vary by provider. However, some landlord policies do not cover the items mentioned below:

• Equipment Breakdowns and Maintenance – If this exclusion is in place, a landlord will need to pay out-of-pocket for maintenance or equipment that breaks down. This might include something like a dishwasher or a furnace that no longer works. If the insurance won’t pay for this, the repairs or replacement are the responsibility of the landlord.

• Shared Property – Some tenants live in the same home as a landlord, either in a specific room or on a specific floor. Based on information from the National Association of Insurance Commissioners, these situations do not quality a landlord to take out landlord protection insurance in Colorado Springs. Instead, these policies are designed for properties that the owner does not occupy. Individuals can speak with their insurer to determine whether coverage can be added to a homeowners insurance policy for the part of the house that is being rented out.

• Tenant Belongings – Most of the time, landlord insurance will not cover the personal possessions of a tenant. Instead, the tenant will be required to purchase their own policy of renters’ insurance. Many landlords require a tenant to show proof of this coverage before being allowed to sign a rental contract. This insurance policy helps a tenant replace or repair personal belongings if they are damaged in certain situations, like theft or fire.

Additional Helpful Coverage

Based on many factors, such as the rental condition, the neighborhood, and the geographic area, some landlords will want to add extra optional coverage to their landlord protection insurance. Some options to consider include:

• Building Codes – Individuals replacing or repairing part of a rental after damage may be legally required to upgrade things like ventilation or wiring. The reason for that is because building codes can change after the property has been built. This coverage assists with these costs.

• Burglary – Typical landlord insurance may help repair a home after a burglary, but it won’t cover the items that were stolen. This optional coverage can help with the theft of items left on the property to maintain it, such as a lawnmower.

• Vandalism – Optional coverage is available for situations where vandalism damage needs to be repaired. This typically is not covered by traditional landlord protection insurance unless it is purchased as an addition.

Landlord protection insurance is essential for avoiding huge expenses when something goes wrong. It protects the landlord and the property that is being rented. Many insurance providers offer this type of coverage, so it’s important to research the options to get the coverage level needed at a reasonable price.