Whether or not you think it’s necessary, apartments must be insured. You will expect your tenants to protect their items in case of flooding, earthquakes, and other natural disasters, so you must ensure that the buildings are safe in the event of a problem. Getting an apartment building insurance quote in California makes a lot of sense when you think about it.
Your Money/Time
You’ve invested a lot of time and effort to find the right buildings. You like them and you know you can make money from them. That’s the best part of owning a rental property. However, you need to protect that investment. Wouldn’t you insure your vehicle or private home against vandalism, theft, fire, accidents and more? So you should protect your rental property.
Otherwise, if a problem occurs, you may be out thousands or millions of dollars to repair or rebuild. Plus, you may be required to pay the claims for your tenants, especially if the building isn’t insured but the tenants have renter’s insurance.
How You Could Lose
Landlords have to take on a lot of risks because they can lose out in two primary ways. For one, your buildings will decrease in value because they are damaged. For another, you could lose your income or at least the part of it pertaining to rentals. This can lead to problems with paying the mortgage and you may lose the property altogether. You could also lose your private property, especially if the banks seizes it to help pay off the mortgage.
Therefore, considering an apartment building insurance quote in California makes sense. It doesn’t cost anything to receive the quotes, and you can then compare companies to find the best one. You’re under no obligation to commit and will have plenty of time to read through the policy and make a final decision.
