Just as insurance on your car, whether it is “third party” or “comprehensive”, guarantees you to cover part of the costs of your traffic accidents, and just as health insurance guarantees covering a percentage of your treatment costs, insurance on your home also guarantees you to cover part of your investment loss, if it occurs...
Many investors, especially new ones, do not realize the importance of insurance on their properties, and the advantages it provides to them, to maintain their investment portfolios, and reduce the number of financial losses in the event of exposure to risks.
The importance of real estate insurance does not lie in covering the number of losses caused by natural phenomena, such as floods, earthquakes, hurricanes, and others, but rather to human-caused disasters, such as fire accidents, cracks, or collapses when making modifications, or collisions with the exterior facades of the house, explosions, theft accidents, and water leakage.
More importantly, there are types of insurance that include insurance for workers inside the house, in addition to the material property it contains, and other important types for investors, that guarantee the investment return throughout the period of damage, which means that the process of reaping the investment return continues, despite the lack of occupancy of the real estate unit as a result of damage to it. All types of these insurances are found by the investor in detail in the insurance policy and the terms of the contract agreed upon with the insurance authority.
For these and other privileges, insurance on real estate and homes is mandatory and necessary when owning and investing in the real estate field of all kinds, and the creation of an insurance policy with detailed clauses according to the desire of the property owner, in addition to the purchase contract, to ensure that the holders of this document cover their group of investments and properties from various risks and disasters, whether human or natural.
The insurance policy provides many advantages to landlords and tenants, the most important of which is the amount of compensation for the loss of rent value, or granting him the cost of renting an alternative housing if the property is uninhabitable due to the damage incurred.
If car insurance is mandatory before using it, and health insurance is mandatory, why isn't real estate insurance mandatory as well, because of its benefits to the investor?
Many may not be convinced of the idea of real estate insurance or take it easy because of not realizing its importance in the investment plan and its profits. And the desired returns, the insurance on the real estate is the insurance of the investment portfolio.
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