Be Sure and Insure

When it comes to real estate investing - be sure and insure. There are big differences in the home insurance you carry and the insurance needed to cover a rental property and your tenants. Don't be caught unaware and uncovered!

The real estate boom in Alberta means that more and more people are entering the market and the competition is stiff. This can put pressure on you as you invest, as each home may have multiple offers and this in turn can cause some people to panic. They will remove conditions before they should or overlook insurance coverage that could be costly. Before finally signing on the dotted line check with your insurance agent to make sure he has checked his market and not only got the best premium price for you, but also that the property you want to invest in can be insured at all.

Each insurance agent will have different options for your property and what some will cover, others will eschew. An important note is to be sure that your tenants know that they are not covered under your insurance policy for the home. Draw it to their attention and if possible have them sign off on it as part of their rental agreement that they either get tenants insurance coverage of their own or at least acknowledge that you discussed it with them. This way there will be no misunderstandings should a claim have to be made. You can even refer them to your insurance agent to make it easy for them.

Cover all of your basis as you invest in the real estate market starting with insurance coverage.

Rhonda Hoffman

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