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Investor/Rental Property Coverage Considerations

More Americans are viewing renting residential homes as a feasible substitute to obtaining a mortgage to purchase a home. Across the population between 25 and 54 years old, the home ownership rate is at an all-time low of 65%. People under 30 years old make up 51% of the rental housing market in the US. In reaction to the economic downturn and new regulatory requirements, lenders have tightened mortgage standards which require larger down payments to obtain a mortgage. With the fluctuating economy and tightening on credit standards, renting has become a favorable option over home ownership.

Large and small American investors are taking advantage of the current residential trends and are seizing the opportunity to expand their portfolios. Buying, renovating, and renting residential properties is becoming a mainstream alternative to traditional ways of earning income. As an investor, a traditional home owners policy may not provide enough protection to safeguard your assets; especially if the property is vacant. Understanding property and liability insurance coverages is a critical component for anyone that invests in rental real estate properties because it can dictate your business’ overall success and protect your valuable investment. Unfortunately, applying for property and liability insurance on each rental properties can be cumbersome and time consuming.

rental keys handed over

Introducing the PFI Investor/REO Rental Program

Proctor Financial, Inc.’s Investor/REO Rental Program is different, though not new. PFI has been providing property and liability insurance solutions to the Investor/Rental industry for the past four years. Written as a master policy, upon underwriting approval, properties are reported for coverage via a web portal providing immediate coverage. Rates are competitive, administration streamlined- so that you are spending more time on evaluating more properties and less time worrying if your assets are covered in the event of a loss.

Who is eligible for this coverage?

PFI offers its Investor/REO Rental Program to financial institutions, property investors, REITs and other real estate capital companies who have portfolios of 30-50 or more residential properties.

What is covered?

PFI does its best to minimize investor exposure to risk from rental properties. This insurance covers each individual property within an investment portfolio and provides both property and liability insurance for fire, injury, and more. In some instances, it may also cover theft, vandalism and loss of rents. Replacement cost coverage with no co-insurance may be available if maximum coverage is purchased.

There is a great deal to consider when it comes to insurance and protecting your business assets. Having the right form of insurance is essential to any business. For investors in the business of fixing up residential properties and renting them out, it is crucial to be protected both from loss and liability. Also, reduced administration means more profit on your portfolio.

If you are looking for comprehensive coverage for the current – and future – properties in your portfolio, contact us

Monica Sachdev
Other articles by: Monica Sachdev
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