With the recovery of the housing market, more people are purchasing real estate as an investment vehicle. If you own a one to four unit single family home or a small apartment building as a real estate investment, it's an excellent idea to consider purchasing dwelling insurance to protect your property. The insurance agents at NorthEast Insurance Services, located in Englishtown, NJ, explain the basics of dwelling insurance and why you should purchase it for your investment properties.
Dwelling insurance provides coverage to the structure of your investment property, but not any of its contents, making it ideal for properties you own that do not contain any of your personal belongings. Most dwelling insurance policies also include liability coverage. This additional coverage protects you from expensive lawsuits that could result from personal injuries on your property. If you don’t have dwelling insurance that provides this liability coverage, a lawsuit could potentially cost you hundreds of thousands of dollars.
Dwelling insurance protects your investment property from damage from fire, lightning strikes, explosions, hail, and smoke damage. It does not cover any damages that result from flooding or earthquakes. If a covered disaster occurs that damages your investment property, the policy may pay to rebuild either the entire structure or the area that needs repair. Dwelling insurance covers anything that is attached to the main structure of the property, including attached garages, sunrooms, or decks. You have the option to add additional coverage to your policy for unattached garages, sheds, or pools.
The homeowner’s insurance team at NorthEast Insurance Services can help you choose the right coverage for your one-to-four unit dwelling investment property. Give them a call at (732) 972-1771 to speak to an insurance agent about their products for individuals and businesses, or visit their website to learn more about their commercial insurance policies.