Many investors in America, especially the new ones, do not realize the importance of insuring their real estate in America, and the advantages it provides for them, to maintain their investment portfolios, and reduce the amount of financial losses in the event that they are exposed to risks.
Real estate insurance in America
The importance of real estate insurance in America does not lie in covering the amount of losses caused by natural phenomena, such as floods, earthquakes, hurricanes, and others, but rather to human-caused disasters, such as fire accidents, cracks, or collapses when making adjustments, or collisions with external interfaces For home, explosions, theft accidents, water leakage.
More importantly, there are types of insurance that include workers' insurance inside the home, in addition to the material property it contains, and other important types for investors that guarantee the return on investment throughout the period of damage.
This means that the process of reaping the investment return continues, despite the lack of occupancy of the real estate unit as a result of the damage incurred. All types of these insurances are found by the investor in detail in the insurance policy and the terms of the contract agreed upon with the insurance authority.
How to insure real estate in America
For these and other privileges, insurance on real estate and homes is mandatory and necessary when owning and investing in the real estate field of all kinds, and the creation of an insurance policy with detailed clauses according to the desire of the property owner, in addition to the purchase contract, to ensure that the holders of this document cover their group of investments and properties from various risks and disasters , whether human or natural.
The insurance policy provides many advantages to landlords and tenants, the most important of which is the amount of compensation for the loss of rent value, or granting him the cost of renting an alternative housing, if the property is uninhabitable due to the damage incurred.
If car insurance is mandatory before using it, and health insurance is mandatory, why isn't real estate insurance mandatory as well, because of its benefits to the investor?
Many may not be convinced of the idea of real estate insurance or take it easy because of not realizing its importance in the investment plan and its profits. and the desired returns, as real estate insurance is insurance for the investment portfolio.