One of the most important steps for rental property investors is securing the right insurance coverage. While Oracle Property Solutions cannot provide specific insurance advice, we want to help you understand common insurance questions and facts so you can protect your investment and avoid costly surprises.
Why is the Right Insurance So Critical?
A homeowner’s insurance policy generally becomes invalid within 30 days after converting your property into a rental. This means you must obtain a proper landlord or rental property insurance policy promptly. Without it, you risk major financial loss in the event of damage, liability claims, or other unforeseen circumstances.
What Types of Insurance Should I Have?
The most essential coverage includes:
Building coverage – Protection for the physical structure of your property
Hazard and fire insurance – Covers damage from fire and other hazards
Liability insurance – Protects you if someone is injured on your property
Depending on your property’s location, age, and unique risks, you may want to explore additional coverage such as:
Flood insurance (especially if in a floodplain)
Sewer backup insurance
Worker’s compensation
Terrorism insurance
Loss of income insurance (loss of rent)
Important Questions to Ask Your Insurance Agent
Do I have the right insurance for my rental property?
Make sure your policy is specifically tailored for rental or investment properties.Are outbuildings covered?
Additional structures like garages or sheds may not be included unless specified.Is loss of rent covered?
Find out under what circumstances you can claim loss of rental income (e.g., fire or vandalism), and clarify what is excluded (such as tenant-initiated vacancy).What disasters are covered?
Standard policies often exclude natural disasters like floods or hurricanes. Ask about water damage or other related coverage specifics.How can I reduce my insurance costs?
Landlord policies tend to be more expensive due to increased risks. Discounts may be available for security systems, deadbolts, and fire extinguishers.
Tips for Protecting Your Investment
Be upfront and detailed with your insurance agent about your property — age, type (single-family, condo, multi-unit), condition, and special features.
Regularly review and update your policy — at least once a year.
Make sure to provide Oracle Property Solutions with proof of your current insurance as required in your management agreement.
Don’t hesitate to shop around if your agent cannot adequately answer your questions.
Final Thoughts
Having the right insurance is a vital part of managing risk and protecting your rental investment. Take the time to understand your coverage, ask the right questions, and keep your policy current.
If you need assistance or have questions about your rental property management, Oracle Property Solutions is here to support you every step of the way.
