Property investment is blooming among all people. The reason behind property investment is its wide potential benefits. Some of the potential benefits are of mortgage and tax benefits. Despite of its advantage and benefits, investment property insurance also includes various factors of risk. These risks can be eliminated by the investment property insurance.
If the invested property gets damaged then investment property insurance compensated the policyholder, to repair or renew the property. There various reasons due to which the property gets damaged, some of them are natural tragedies such as, floods, fire, or earthquake. The charges to mend the damaged or loss of property will rip your money. However, investment property insurance ensures the compensation to repair or fix the property.
Apart from damage or loss compensation, investment property insurance offers liable cover for the lawsuits, in case if you were sued by other parties. For instance, if any person gets harmed in your investment property, then investment property insurance will pay off for the losses or damages.
Two Categories of Investment Property Insurance
Residential and commercial residential investment properties are the two categories of investment property insurance. Residential investment property insurance compensate for the losses or damages of tenements, condo unites, apartments, homes, etc. Whereas, commercial investment property insurance offers cover to the buildings, malls, centers, office unit, etc.
Residential Investment Property Insurance
One of the best examples of biggest property insurance is a home. A person needs to protect this property investment by choosing investment property insurance. Moreover, residential investment property insurance offers complete protection of proprietor from the expenses on repairs caused due to the perils like, earthquakes or fire. With the structure of the house, investment property insurance also offers liable cover to the additional structures and content of the home. Swimming pools, patios, barn houses, gazebos, etc.
Some of the policies of the investment property insurance are specifically designed for proprietors. The proprietor gets protected from the tenant living on rent by these types of policy of residential investment property insurance.
A renter also gets the liable protection of residential investment property insurance. In common words, the residential investment property insurance cover the perils of loss or damage due to the vandalism, accidental loss or damage, storm damage, or fire damage. Moreover, a proprietor can choose the policy coverage for the loss of rent, it means, if a tenant stops paying the rent. Choosing such policy of residential investment property insurance will give double benefit, and eliminate any risk.
Commercial Investment Property Insurance
Similarly, like above investment property insurance, it also offers the insurance but to the commercial properties only. The biggest difference in both is that commercial investment property insurance concentrates more on providing liable coverage to the commercial features of the invested property.
For instance, take the event of September 11. Bombings on twin towers caused damages of millions of dollars. Many office buildings of that area were ruined and destroyed in the attack. Re-building of such sky scrapers cost hefty amount of money. Most of the business could have gone bankrupt in few days but because of the commercial investment property insurance they were secured and didn’t get much affected monetarily. This is why, at that time property investment industry was underrated due to the numerous liable claim of commercial investment property insurance was filed.