Whether you are a seasoned real estate investor, or a first-time landlord, you are looking for insurance coverage appropriate for your property. Owners of an investment property, maybe in a resort area, or someone who is renting out their home while trying to sell it, typically want insure it with a policy similar to what they have on their full-time residence. It includes a comprehensive list of causes of loss and replacement cost settlement. Your agent may refer to this kind of coverage as “special form” or “DP-3.”
But many rental properties are more basic, showing a bit of wear and tear but basically sound. These kinds of structures need something more basic. Your agent may refer to this kind of coverage as “basic form,” “DP-1” or simply “fire insurance.”
American Modern offers both types of coverage.
Coverage provided – Any cause of loss is allowed except those specifically excluded in the policy documents. Losses are settled at the replacement cost, up to the policy limit. There is no depreciation deduction.
Coverage provided – The policy covers just those causes of loss listed by name in the policy documents (fire, lighting, wind, hail, explosion, and others). It covers the most common risks, but not everything. Losses are settled for the actual cash value (ACV), which takes depreciation into account. In many states we offer an upgrade to full repair cost coverage.
Real estate investors with ten or more rental properties can simplify insurance management by combining all of the holdings onto one policy form, with one renewal date and one payment schedule.
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