| One of the least considered, but perhaps
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| | vital for all property owners to carry a
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| most important aspects of successful real
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| | sufficient amount of liability insurance
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| estate investment is insurance against
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| | to protect themselves and their personal
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| losses. Even though the market for
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| | assets. It may also help to have your
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| residential real estate has begun to
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| | insurance professional "walk" the
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| cool, commercial real estate investment
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| | property with you to point out potential
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| opportunities abound. Commercial
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| | hazards before they become law suits.
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| properties have additional risks that
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| | Hazard insurance provides protection in
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| need to be mitigated and in today's
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| | the event of damage from fire, accidents,
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| litigious society, it is important for
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| | theft, and vandalism. Depending upon
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| investors to take the steps necessary to
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| | where you live, you might want to look
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| protect themselves and their investments.
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| | into adding protection from storms and
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| As the housing market begins to cool off,
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| | natural disasters. All owners of real
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| the investment risk of real estate has
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| | estate should have this insurance and
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| increased somewhat. Residential and
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| | again, if a loan is involved, the lender
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| commercial real estate investors can no
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| | will require you to purchase it and name
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| longer rely on a continually increasing
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| | them as an additional insured.
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| market to bail them out of mediocre or
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| | Environmental insurance is a new form of
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| bad purchases. The only real insurance
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| | risk management that is gaining in
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| you have here is to study investment
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| | popularity with lenders. Instead of
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| analysis further and to really check your
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| | performing Phase 1 and Phase 2
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| market before committing funds to a
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| | environmental studies, more lenders are
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| transaction.
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| | opting for insurance against this type of
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| There are other risks in commercial real
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| | loss. Because lender liability is
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| estate that you can mitigate through
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| | limited in current law, the focus is on
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| third party insurance policies. The most
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| | paying the outstanding loan balance or
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| common form is title insurance. Most
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| | the cost of clean up, whichever is less.
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| real estate professionals recommend that
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| | A word of caution here: Make the lender
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| buyers obtain title insurance on any
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| | get the insurance (you'll still have to
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| property they purchase and if a loan is
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| | pay for it) … it's not your job to
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| involved, the lender will make it a
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| | understand the intricacies of
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| condition of obtaining the loan. The
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| | environmental pollution and its risks.
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| purpose of title insurance is to protect
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| | In addition to these basic forms of real
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| the buyer in the event that problems are
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| | estate insurance there are other types of
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| found with the title after the close.
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| | coverage that you may wish to consider.
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| Even though all sales of real estate
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| | For instance, those properties located in
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| include a title search, it is a good idea
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| | or near flood zones may wish to purchase
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| for the buyer to purchase separate title
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| | flood insurance, while those in
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| insurance as an extra measure of
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| | earthquake prone regions may want to
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| protection against mistakes in the
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| | consider the purchase of additional
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| search. This extra insurance will help
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| | earthquake insurance. And in the wake of
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| protect the buyer in the event of any
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| | 9/11, there is even the opportunity to
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| undiscovered liens, disputes over
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| | purchase terrorism insurance!
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| property lines, or other matters
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| | In the final analysis, each real estate
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| affecting title.
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| | investor has to look at his or her own
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| Another common, but important form of
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| | level of risk tolerance and what might
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| insurance for investment property is
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| | actually affect the real estate
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| liability insurance. This provides the
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| | investment. From there, with the help of
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| investor protection from liability in the
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| | an experienced commercial hazard
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| event an individual is injured while on
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| | insurance broker, you can then purchase
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| the property. It is all too common for
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| | the right mix of insurance needed to
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| individual property owners to be sued for
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| | adequately address and mitigate those
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| seemingly frivolous reasons, so it is
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| | risks.
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