The question may sound simple, but in my experience many investment property owners have never thought through just how much of their rental income they should or need to have insured.
Here are a few things I discuss with my clients when going over how much of their rental income from a property they should insure, it’s pretty simple, I promise!
The length of period that the Carrier is willing to offer for Loss of Income/Rents
The Monthly / Annual Revenue you receive from that property
The Average length of time that it takes in their area to rebuild their property
Do some Owners insure for less than their Monthly or Annual income?
Yes, and for various reasons: sometimes there are Carrier restrictions, and sometimes it’s due to the risk the Property Owner is willing to carry. Everyone is different, but everyone should at least review these questions to ensure they are properly protected.