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IWP!, flagship product is Chicago's premiere real estate Investment
magazine. Entitled Invest With Passion!, it is the tool for investors and professionals in the
Mid-West. The publication seeks to grow it's market share by providing
powerful information designed to build the reader both as an investor and a
person.
Since it's release in January of 2006, the magazine has been well received and
continues to gain momentum and support. The education, information, and
networking opportunities for the real estate investor has been long neglected.
No More!
The time is now and the momentum is building.
It's Happening!
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TOP TEN INSURANCE TIPS FOR LANDLORDS
By Elizabeth Axtell
As a landlord, you have many
things that need your attention. By making sure that you are aware of a
few points, you can save aggravation in the event of a claim and ensure
that your investment is protected.
10. Make sure your properties are
up to par on safety. Make sure all of your units have smoke detectors,
carbon monoxide detectors and that you have at least one fire extinguisher
per hallway. Also make sure you have well-lit exit signs and that the
walkways are free of debris. When an insurance company inspects your
building, these are indications of a responsible owner.
9. Have higher liability limits.
As the owner of a property where other people are living, you should have
a minimum of $2,000,000 of coverage. We live in a litigious society and
the more tenants you have, the greater your exposure to lawsuits.
Increasing your liability limits usually doesn't add too much onto your
policy, so find out from your agent how much it would be to increase your
limits.
8. Do you have more than one
property? Consider a Commercial Liability Umbrella. Along the same lines
of having higher liability limits, a Commercial Liability Umbrella will
extend your coverage to more than one property for a lower rate than
increasing each property individually (and would also cover any vehicles
used for business). If a person falls on your property because you were
not able to get out to salt the ice right away, they could potentially sue
you for their medical bills and even more if they had to miss work.
Umbrellas also cover defense costs, attorney's fees, property damage and
advertising injury.
7. Make sure you're not over- or
under-insured. Your insurance does not always have to match the loan
amount or the market value of the property. You have the option of
insuring your property at Replacement Cost or Actual Cash Value. In
either event, make sure your agent calculates both to illustrate the
difference in premiums and coverage. Remember that you're only insuring
the property not the land underneath it!
6. Is your property protected
from machinery breakdown? Check your policy to see that your property is
protected against damage from equipments such as boilers, air
conditioning, refrigeration and computer systems.
5. Look into flood insurance and
sewer back-up/sump pump overflow coverage. Water damage is looked at
very closely by insurance companies and many policies don't automatically
include sewer back-up coverage. Flood insurance is almost always
separate. Nearly 25% of all flood claims come from low to moderate risk
zones. There are limits to these coverages, especially when it comes to
personal property, so make sure you're aware of your coverage limits.
4. Make sure anything you keep on
premises is covered. Do you furnish apartments or keep equipment for
property upkeep or beautification on hand in your property? If so, make
sure that your Business Personal Property is covered. You'll want to have
an idea of the value of your items on hand so that you can cover them
properly.
3. Be aware of what's not
covered. Knowing the limits of your policy will decrease issues later if
there is a claim. It will help you know what you do need to cover
separately to avoid financial loss. All too often, faulty knowledge of
coverage limitations leads to something falling outside the coverage
zones. Avoid this dilemma.
2. See what your options are.
It's always a good idea to review your coverage with your agent, typically
at least every 1-2 years. By doing this, you make sure that your limits
are up to date and this will give you an opportunity to ask your agent any
coverage questions. It's also good to shop around occasionally, to see
how competitive your agent is and whether or not your coverage is up to
par with what you're currently paying.
1. Make sure your tenants have
insurance for their liability and personal belongings! This is one of the
most important points of building coverage. Your policy will generally
not extend coverage to the personal property of your tenants - they are
responsible for anything they move into the unit. However, if a tenant is
responsible for starting a fire in your property and if they do not have
renters insurance, your policy will cover the damage to the property. In
addition to your policy paying out for the damages, the claim will remain
on your claims history record, which may affect your rates for insurance
in the future. Renters insurance is inexpensive in many cases and you
want to make sure your investment is protected and that your ability to
protect that investment is not at risk.
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Elizabeth Axtell represents
American Family Insurance. Her office is located in Forest Park, IL. She
is licensed in property, casualty, life and health insurance. She can be
reached by phone at 708-366-2003, or online at
www.lizaxtellagency.com.
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