REAL ESTATE INVESTORS
Mainstream Insurance Services (MIS) has designed insurance products tailored to the needs of investors that are purchasing portfolios of residential properties. These properties are typically renovated and converted to rental properties. It is an emerging market with over $20 billion of fresh capital being infused into the market from institutional investors and private sources of capital. The market for single family resident rental properties has grown rapidly and is estimated to be as large as 14 million properties.
MIS has insurance professionals focused on real estate investors and views the Real Estate Investor (REI) market as one that is underserved and misunderstood by the insurance industry. We are continually working to educate the insurance marketplace as to the value and unique characteristics of the portfolios owned and managed by investors, thus placing MIS at the forefront of changing the Real Estate Investor insurance paradigm from “High Risk” to a “Preferred”.
Landlord insurance provides coverage for property owners renting out one or more residential homes, apartments, or condos. As a landlord, you need protection from financial loss that may result from damages to a rental property due to fire, break-in, severe weather and more. You can get insurance to help cover loss of income in the event that your rental units become uninhabitable due to circumstances beyond your control.
To get information, advice, and to find the right coverage to match your needs, contact an independent agent at MIS today. An agent can guide you in the right direction with free insurance quotes from several different insurance companies and help you find the landlord insurance plan that makes the most sense for you.
What Does Landlord Insurance Cover?
Landlord insurance provides several important types of coverage. Depending on the insurance company you work with and the options you choose, your policy may consist of some or all of these types of insurance:
Property damage: This covers damage to your buildings and personal property due to fire, storm damage, theft, vandalism and tenant damage. Ideally, your landlord insurance will cover the replacement costs for your entire rental property in the event of a total loss.
Liability insurance: This coverage protects you against liability claims and lawsuits. Whether a tenant, visitor or even a trespasser is injured on your rental property, you could find yourself in a legal mess. Your liability insurance will help you cover the costs associated with bodily injury claims on your property. These costs can include medical payments, funeral costs, legal fees and judgment or settlement costs. You will also be covered if you, as the landlord, are found responsible for another person’s property damage. For example, if you neglect to fix a leaking water pipe and mold damage destroys a tenant’s expensive collection of vintage albums, a liability claim can be filed against you by the tenant.
Loss of income: This insurance will help compensate you for lost income in the event that a rental property becomes uninhabitable due to a covered loss, such as a storm or apartment fire. Your loss of income coverage, or “rental reimbursement,” will prevent you from losing the income you would have had if you were collecting rent.
Many things can go south during a flip, including stolen materials or structural damage while the house sits empty. Mishaps that eat into potential profit. Most people go into a flip thinking about asking price, cost of renovations and earning potential. It’s important to add insurance coverage to the early list of considerations.
Below we answer two common insurance questions from flipping newbies.
What Type of Insurance Policy do I Need for my Flip?
New house flippers may think general homeowner’s insurance will cover their needs. The type of insurance policy needed for a flip depends on the stage of the project. Here are two policies to consider. A MIS agent can help determine the best policy for each stage of your flip.
Builder’s Risk Policy – A builder's risk policy covers the property during construction. Work with MIS to ensure all of the needed items, such as an installation floater for materials, are included in the policy. Once you complete construction, secure another type of insurance.
Vacant Home Insurance – If the property will sit empty for 30-60 days purchase a vacant home insurance policy. Vacant homes pose a higher risk because no one is present to catch big problems, such as flooding. And vacant homes are also more susceptible to theft and vandalism. A standard homeowner’s insurance policy does not include coverage during times of vacancy. If there are delays in the rehab schedule or the house sits on the market empty for months instead of weeks, vacant home insurance provides protection.
We serve Insurance to the states of Wisconsin, Illinois, and Minnesota.