Quote:
Originally Posted by oregon woodsmoke
Also, another quick note: you can buy "loss of income" insurance.
That does not really guarantee that you will receive income. What it does is replace the income if your unit can not be rented due to damage that is covered by your policy.
If your house burns down, and the insurance company covers loss by fire, and you have a loss of income rider, the insurance company replaces the lost income so you have something to pay the mortgage while the house is being repaired.
It does not cover the time the house is vacant because one tenant moved out and you have not found another.
It also does not cover vacant periods where you can't re-rent because the departing tenants have caused too much damage and you have to take the time to repair it. Nor if your tenants stop paying and refuse to move until they are evicted.
I've heard of agents or sellers who try to imply that "loss of income" insurance can be purchased to guarantee a steady income. That's not true.
When you buy insurance, it is the agent's job to explain to you what your policy covers, so make him explain it to you until you understand what it is that you are buying.
You will also get a printed copy of your policy that outlines everything that is covered.
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Thanks for your 2 useful and informative posts.
I wonder if anyone who bought through Brennan Properties would be willing to share their list of hazard insurers that Brennans would have given them?
I doubt if the majority of USA insurers will insure a UK resident.
Also there is a lack of UK insurers willing to insure Brits who have bought in the USA (outside Florida anyway).