What are the types of real estate insurance in America? Insurance in America, especially, is one of the successful means in facing the risks and disasters that a person may be exposed to in his entity or his property.
Therefore, it has become easy to benefit from insurance in all areas such as income insurance, health insurance and property insurance (cars, real estate, etc.), and real estate insurance is one of the successful and effective means in real estate investment, as it protects the investor or real estate owner from risks that may lead to the loss of the property completely or Partial, which sometimes leads to financial ruin for some investors.
The successful investor often seeks to reduce costs in a way that does not harm the quality of his project, and a common mistake is to consider insurance as an additional cost, specifically when the period of ownership of the property is short (buying and selling real estate) and the investor asks himself why insurance and the project is fast? Forgetting the many dangers it may face.
Types of real estate insurance for investors
The types of real estate investments vary between contracting, construction, building and renting, and each of them has specific insurance segments. When you know the types of insurance and the characteristics of each type, you can accurately determine your need, and a professional insurance broker can also be used to determine your needs.
General Contractor Insurance
Some states require the contractor to obtain this type of insurance in order to obtain a "general contractor" license. If the contractor is the direct supervisor of the project, it is better for him to obtain this type of insurance (even if the insurance is not mandatory), as the insurance guarantees compensation for unexpected material damages that do not exceed the amount of insurance (the value of the contract).
The "general contractor's insurance" includes compensation for damages resulting from fire, theft or natural disasters, and the insurance may also include compensation for damages that may occur to machinery and equipment within the project, either fully or partially, and machinery and equipment compensation must be recorded in a separate and clear clause in Insurance document.
Liability Protection
When you enter into any investment, you may be subject to a lawsuit (rightly or not) from an employee, partner or a third party, and through liability insurance, the insurance company takes care of all the judicial expenses, and when you rent the property, this type of insurance provides you with medical and legal costs in the event The tenant suffered damage as a result of a defect in the property.
