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Find Out More Information on Key Aspects of Landlord Insurance

Dustin Edwards • May 1, 2021

Ask Questions of Your Insurance Agent to Find the Best Policy

Landlord Insurance
Maybe it’s because we manage 100’s of properties throughout Long Beach or maybe it is because we too own rental properties in Long Beach, whatever the reason we have seen more advertising for landlord insurance lately. Landlord insurance isn’t as commonly shopped for as your home and auto policies which made us think we should highlight a few areas for you to explore with your landlord insurance.

Liability Protection
When one thinks of landlord insurance it isn’t likely you are first thinking of liability protection; however, we would challenge you to consider this as a top priority. While it might be unpleasant to talk about the legal coverage with your insurance agent, it would certainly be more unpleasant to find out when you really need it that you don’t have the coverage you thought you had.  

Consider asking a few questions such as:
  • What types of situations have you encountered where it has been necessary for the insurance carrier to help with legal proceedings?
  • What have you found that the insurance company most often settles at? (Note: While this may get an odd look from your insurance agent, remember most legal complaints don’t go to trial, they settle.)
  • Do you recommend I carry an umbrella policy in addition to my liability coverage? How often and in what scenarios have you seen the umbrella used in addition to the liability protection?
An insurance agent is there for far more than just “what price is my policy?” and while the liability items aren’t fun to talk about it is important to get their insight and experience when you aren’t under the pressure of a real situation.

Loss of Rental Income
If a disaster should strike you could still have a mortgage to pay...and even if you don’t there are still ongoing expenses with the property (insurance, property taxes, etc.). Policies can call it different items, i.e it can sometimes be called “fair value rental coverage”, but regardless of the name it is important to understand what it will cover. For example ask your insurance agent the following:
  • How much rent will I receive under the policy if a disaster strikes?
  • How long will I receive that payment?
  • How long will it be until I receive the first payment?
The last question is key as some companies can take months before you get paid and that means you will need to have your own reserves in place to cover the unthinkable.  

Rebuilding Costs
When most people think of insurance related to properties they think of “what happens in a fire?” and that is a perfectly valid concern. For your rental property consider the following:
  • The year built of the property - This can certainly be a discussion point with your insurance agent, but consider if your property was built in the 1940’s (common for properties in Long Beach) and then ask yourself what has been upgraded since then when it comes to core systems? Is the plumbing copper or Pex? Is the water heater tankless system now? While these might seem trivial now, in the case of a disaster bringing everything up to current code (to be in compliance with local building codes) could make it so your policy might not cover all of the repairs. Ask your insurance agent to understand what might be needed to ensure you can bring the property current if the worst case should happen.
  • Level of upgrades - Even the nice rentals usually don’t have the same quality of materials as your primary residence. After all you can get great flooring for rental at ~$3 a foot while you might splurge for the flooring you really love for your own home that could be north of $10 a foot. Take careful note of what is in your rental and discuss those with your insurance agent as well.

What Disasters Are Covered?
Understanding what scenarios are covered is important to avoid surprises. One common exclusion, in regards to natural disasters, is that of earthquake coverage. This is generally a separate policy and is one that you should ask your insurance agent about. While we know the likelihood of an earthquake is low, remember, you have an obligation to your renter, not just your property so it is important to have a plan in place to understand how you can protect your renter and your property.

When you want to find out more about what we would recommend asking your insurance agent about we invite you to call us today at (562) 888-0247 or you can even fill out our Owner Application and we can develop a custom rental analysis for your property (or properties).

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By Dustin Edwards November 18, 2024
Be aware of these 3 common issues when the rainy season arrives at your rental property.
Cold weather can come fast and strong so it's best to ensure your property is ready for this climate
By Dustin Edwards November 12, 2024
It's important to prepare your rental properties for the colder weather. Although we don’t need to prepare for snow and freezing temperatures, we do need to prepare for the cold and rain. By ensuring your rental is cozy inside and prepared for the fall season , you can not only reduce energy costs for your tenant but also maintain your rental property value. Today, we’ll go over three signs your property is ready for this upcoming cold weather.  Sign #1 Proper Weatherproofing During the colder seasons, it's much easier for a tenant to notice any cold spots in your rental. Well-insulated doors and windows can not only help maintain the warm temperature but also prevent it from lowering. It can also prevent cold spots and drafts, which can help with tenant satisfaction . Doors and windows should be properly sealed and insulated to prevent drafts and maintain proper temperatures. A visual inspection of the weatherstripping around doors and windows to ensure they’re intact is a great place to start. If damaged, consider replacing them, as trying to seal gaps can be tricky and rarely lasts. Other seals should also be checked, as well as any areas that need to be caulked in order to keep cold air out. Insulation during the summer helps keep the cool air in, and during the winter, insulation in the halls and attics helps retain desired heat. Hot air rises, and if there isn't adequate insulation in the ceiling, heat will continually be lost. Luckily, adding insulation to an attic is not uncommon and typically only requires a day or two for installation. Sign #2 Energy Efficiency Measures During the winter, it's not just the cold you need to keep in mind. As days are much shorter, there is less sunlight to keep the rental warm and more hours of darkness. For this reason, it's a good idea to keep energy efficiency in mind when preparing for the cold weather. Energy-efficient lighting or smart lighting helps reduce overall costs since your tenant will likely use electricity to keep warm. Ensure your outdoor lighting is rated for external use, as this can provide crucial illumination during longer nights. Draft guards on doors and windows help reduce the load on your rental’s HVAC system which can significantly improve its lifespan. This is also a great time to replace filters and clean the ductwork in your rental to improve energy efficiency. Additionally, consider installing an insulative film on older windows, which helps retain heat and keep rooms warmer without the need for extra heating. If your rental has a programmable thermostat, ensure it’s in working order, as this can help tenants manage an energy-efficient heating schedule more easily. Sign #3 Property Exterior Southern California is a great place to settle down, and while we don't need to worry about snowfall or deep freezes, ensuring the exterior of your rental property is ready for the cold weather is important. With our cold season mainly bringing with it rain, inspect your rental property’s rain gutter system . Remove debris from drains and check for leaks or signs of wear and tear. Walkways should be clear of debris and well-lit. This may require you to prune and trim trees and bushes that may leave behind leaves. When combined with rainfall, a single wet leaf can cause someone to slip and hurt themselves. Consider adding non-slip mats or tape to areas where people may have tripped in the past. Much like during the hotter weather, it's important for your rental to be ready for fall and winter. By keeping your property ready for any weather Southern California has to offer, you ensure your rental property and tenants will provide steady rental income every month. If you need help preparing your rental for the cold weather or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards November 4, 2024
Owning a rental property in a beach city like Long Beach, CA , offers a number of advantages, like great weather and a strong real estate market. However, the cold ocean breezes can pose some challenges for landlords and tenants, making it convenient for property managers . Although the weather is generally great, these ocean breezes can sometimes make properties drafty and uncomfortable during the fall and winter seasons. Today we’ll go over four measures that can improve tenant comfort and protect your investment from the cold ocean breezes. Weatherproofing Againsts Drafts Drafts are caused by gaps between doors and windows which can make a rental feel colder than it is. This leads to unnecessary energy use and tenant discomfort. Sealing these gaps is not difficult and quite doable for a landlord who doesn’t mind getting their hands dirty. Replacing worn weatherstripping and adding fresh caulking to seal minor gaps blocks air from permeating the property. For additional protection from drafts, you can provide your tenant with inexpensive door sweeps. Improve Heating Efficiency Having efficient heating is crucial to countering the cooler ocean breezes while keeping costs low. Schedule regular maintenance for your HVAC system , such as replacing filters, cleaning vents, and cleaning the compressor to keep it running smoothly. This not only provides more efficient heating, it also extends the life of your HVAC system. Installing a smart thermostat is another way for tenants to adjust heating schedules efficiently. Protect Outdoor Spaces Outdoor areas such as patios, balconies, and even porches can oftentimes be exposed to the coastal breezes. This can be an issue in the long run, especially for rentals next to the beach , as the wind can carry sand and salt, which can accelerate the deterioration of metals, wood, and paint. This can be mitigated by adding windbreaks to the property, such as lattice panels or outdoor curtains, to create a more comfortable and functional outdoor space. Exterior finishes will require more frequent maintenance. This includes resealing wood and metal surfaces. As well as repainting is important to protect against wear from salt, sand, and moisture. Wind Mitigating Landscaping Much like with the curtains and lattice previously talked about, the landscaping can also be used as a windbreak. For example, planting wind-resistant shrubs or trees alongside exposed areas creates a natural barrier. This helps reduce the impact of the gusts of wind hitting the property. Many native plants thrive in coastal climates while also requiring minimal maintenance. While expensive, the results can greatly improve your rental’s longevity and curb appeal. Alternatively, you can strategically place planters to provide protection. Durable Furniture Furniture and fixtures exposed to the cold coastal breezes need to be able to withstand that wear and tear. Choose resilient materials such as treated wood, powder-coated metals, and outdoor-rated plastics. These are less prone to being damaged by the salt or wind. Furniture that is lightweight should be secured or anchored in place to prevent it from being blown away. By investing in durable furnishing, you can provide tenants with a comfortable and functional outdoor space for years to come. Protecting your beach city property from the cold ocean breeze doesn't necessarily require extensive renovations or investments. Try to focus on any relevant feedback from your tenant, this can help you pinpoint what part of your rental needs attention. If you need additional help protecting your rental property from the cold ocean breezes or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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