The different types of real estate insurance

Insurance is something that has evolved over the years, to encompass a much larger area. That being said, it has also gotten very specific about what exactly it is that you’re insuring. As for what it means, the definition is in the name. Insurance is something that guarantees you will be reimbursed if something bad happens to whatever it is that you’ve insured.

So what about buildings and real estate? Can those be insured as well? The answer is yes, you can get many different types for building insurance actually. So whether you’re looking to insure your business HQ or even personal home, you should check out these different types of insurance.

Property insurance

This can also be referred to as building insurance and its role is to make sure you are protected in case of any damage that might occur. The basic idea behind this insurance is that if something does happen, your insurance will cover the costs of repairs or even replacing of the property that was deteriorated or destroyed.

Contents insurance

This one is a little different. While the property insurance protects the entire property, the contents insurance only protects the inside contents of that property. So in other words, this is perfect in situations where you are renting from someone else. Why should you pay to insure their property? If you live in a rented apartment or home, you can get contents insurance so only your belongings from inside the property get insured.

Flood insurance

Depending on the area in which you live, the necessity for this kind of insurance is more or less realistic. However, it still exists, and the purpose of flood insurance is to make sure you are protected if anything happens to your property or belongings during or in the aftermath of a flood.

There is an overall high risk when it comes to flood insurance but if the area in which you live deems it necessary, you might not have much of an option, especially if pay mortgage. In that scenario, the mortgage lender may request that there is flood insurance for the property, so that both party’s interests are protected. Of course, when other people are involved like that, you need a guide to make sense of all of it.

Landlord insurance

This one may seem a bit weird, but it’s out there

The landlord insurance is specifically directed towards landlords that rent out properties. The purpose of this insurance type is to protect landlords in the eventuality of something happening to their properties, but most importantly, it protects them if they have no tenants. Having no tenants as a landlord is a very bad thing and it means they lose money. They can prevent this if they have no tenants by having landlord insurance, which will protect them.

Previous articleStatus of Water Systems in Areas Affected by Harvey
Next articleSurvivor Housing a Priority for the Federal and State Recovery Effort after Hurricane Harvey