When a business or individual invests in a property, they take full responsibility of its upkeep. The home may not be a primary residence, however, and it is meant to be a rental property. Investors need to protect their property by looking into OREO insurance. These policies cover residences that are not currently inhabited. In fact, it benefits the investor to have this insurance for several reasons.
OREO Insurance and Asset Coverage
The main reason to seek out OREO insurance is for asset protection. Blown-out windows, damaged siding and other issues can occur when the home stands temporarily without a resident. Investors cannot rely on other insurance policies during this time period. Only OREO coverage can help with costs incurred during a home’s vacancy. The damages might stem from vandalism or natural elements. An estimator will still need to evaluate the property before any insurance payments are made out to the investor. Legitimate claims will be processed and completed in a reasonable time period.
Lawsuit Protection
Insurance for investors is especially important during vacant property times because of liability issues. If a person walks onto the property for any reason and becomes injured, the property owner is liable for any damages. Medical costs and personal-anguish lawsuits can come about in these cases. Although no insurance can cover every lawsuit cost, OREO types might help the process along without too much financial loss on the part of the property owner. Both solicitors and trespassers can sue a property owner if anything happens at the home.
Cover Extra Items
Insurance for investors do not normally include other unusual circumstances, such as earthquakes, floods or terrorism. However, there are add-on policies to OREO coverage that can make the property even more protected than before. When floods are common in the area, add this coverage to the policy. Certain damages will be covered when a flood is upon a building. These policy additions are entirely up to the investors’ discretion, but they are valuable in specific situations. They only add to the home’s value over time.
If insurance for investors is confusing, it is important to speak to professionals about those specific questions. A residence that is left without a policy can become a financial headache when repairs arise, or an accident occurs on the property. Always be prepared with OREO insurance when a homeowner’s policy does not apply. Every investor will rest easily as a result.
