Owning multiple properties leads to a number of expenses. You need to have someone looking after each property, ensuring that it’s being properly maintained and in good condition. This involves hiring property managers, gardeners, handymen, and more. With so much to keep track of, it’s easy to overlook one of the most important things: keeping your properties safe with proper insurance coverage. This includes umbrella insurance, which provides many benefits for large property portfolios.
But what does umbrella insurance entail? And how does it work? Here’s what you need to know.
The Net Worth of Large Property Portfolios
Those who own a number of properties understand that they have a large amount of money sitting there, invested in those houses, apartment buildings, and other things. They also realize that the best way to protect these investments is with an insurance policy. A typical commercial property insurance policy covers the structure itself and usually includes liability insurance, which provides assistance should someone get hurt on the property or break something expensive within its confines. However, this liability insurance may not be enough.
Where Umbrella Insurance Comes Into Play
Owning a large amount of properties comes with headaches, such as not having enough liability coverage to pay to replace that work of art in the apartment lobby or the designer-built fountain located right outside the front doors. Since standard liability insurance has monetary limits, you’ll be stuck paying out of pocket for any repairs or replacement costs over the insurance limit. Thankfully, there’s a solution: umbrella insurance.
What is Umbrella Insurance?
Basically, umbrella insurance is a type of liability insurance that allows for larger coverage amounts. This insurance will cover extra costs that your standard liability policy won’t. It acts like an umbrella that way, sheltering your bank account from having to pay for additional repair costs or lawsuit amounts out of pocket.
With that said, you can’t just use your umbrella insurance when something happens. Instead, you need to wait until your standard liability policy is enacted. Once it is and you realize that it doesn’t have enough coverage for everything, then you can use the umbrella policy. It’s a “just in case” type of insurance.
When You Own a Large Amount of Properties
It makes sense to invest in real estate, growing your portfolio and watching each one grow and add to your net worth. It also makes sense to have the right insurance policies in place to protect everything in that real estate portfolio. This includes standard building coverage and liability insurance, as well as an extra policy, umbrella insurance, which provides you with that extra help should the unexpected happen. It’s always good to make sure that your investments are properly protected, especially if they’re in the form of properties.
Have Questions? Contact Charlotte Insurance
Want to learn more about umbrella insurance for your large property portfolio? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan you need.