Until something goes wrong, many homeowners forget about the water that flows into the house and the wastewater that leaves through buried piping. However, when something malfunctions or a leak occurs, it is the homeowner’s responsibility to pay for the repairs and not the utility company. Since the leak usually doesn’t occur within the home, your homeowner’s insurance policy will not pay for the expense. Instead, you will need water line protection insurance if you want to save yourself thousands on the expense.
The Homeowner’s Nightmare
To fix a problem with piping takes a lot of effort by both plumbers, contractors, and even landscapers. Many homeowners try to avoid the nightmare by paying for a service plan (offered by many utility companies) that would cover damages or for a home warranty program. For older homes, the risk of problems increases. An insurance plan is the peace of mind you need when something goes wrong.
The Homeowner’s Choice
When you pay for a service plan from your utility company, you are limited in your repair options and timeline. An insurance policy gives you the freedom to choose the plumber or contractor you want for the repairs. The power of choice goes a long way in your ability to take care of your property. You don’t have to worry about the finances to make needed repairs, and you can trust the service personnel that you have hired.
Landlord insurance takes care of the unique risks that are present whenever you rent out your home, condo, or other investment property. Whether you choose to your own home for rental income or you have several investment properties that you are working with, carrying the right property insurance is a safeguard against the many financial risks you are facing.
Types of Coverage
Depending on what your property is classified as you will want to address specific exposures in your coverage. Whether you are using rental property insurance or investment property insurance, your coverage should address the structures on the property, the contents of any property belonging to the landlord, liability coverage, and potentially lost income coverage. Your coverage needs are similar to what is found in homeowner’s insurance, but there is an added risk whenever tenants are on the property.
One of the most popular coverage forms for any company or investment venture is general liability. This is protection from claims against damage or injury that occur on your property. Up to the policy limits, your coverage takes effect against medical costs or legal costs that arise from visitors or tenants that are injured while on your property.
Don’t just settle for liability coverage with your property. Your investment may also need loss of rent protection, business owner’s protection, or commercial auto coverage.
Contractors and subcontractors that are hired for projects that cost millions of dollars often look at wrap-up programs for their insurance needs. This insurance is a liability policy that bundles several different insurance needs into one plan. Owner-controlled and contractor-controlled are the two types of wrap-up insurance plans.
Who Controls the Plan?
With contractor-controlled insurance, the general contractor may take out the plan to extend coverage to any of the contractors or the subcontractors that will be working on the project. An owner-controlled policy is taken out by the project owner and covers a list of contractors on the project. It doesn’t matter who takes out the plan, as the insurance is a peace of mind and blanket coverage options protecting everyone involved.
Why Choose Wrap-Up?
If the owner or the contractors each took out their own insurance policies, there could be gaps in the coverage or the limits may be insufficient for the damage or work needed. With wrap-up, the coverage plan includes basic exposures but covers additional risks through add-ons like workers’ compensation, excess liability, pollution liability, builder’s risk, professional liability, and railroad protective liability.
A wrap-up policy is more expensive than a general liability policy or even a more traditional construction plan with additional endorsements. However, you can divide the costs between the contractors and subcontractors on the project, making it an affordable and comprehensive protection option.