26 May What Is the Purpose of No Fault Insurance?
No fault insurance coverage, as the owner of multiple properties, you should consider obtaining it. When you decide to own rental properties, you never know what kind of damage or personal injury could happen to the tenants and their guests. You also don’t know if the tenants would ever decide to sue you. If this were to occur, your homeowner’s insurance policy won’t provide coverage or pay the claim. With no fault insurance, you’d be able to file an insurance claim even if you had nothing to do with the damage or injury.
What No Fault Insurance Covers
No fault insurance can cover a variety of accidents, someone falling, tree limbs falling, water leaks, fires, burglaries and/or a variety of other instances. When you own rental properties, it’s probably rare that you visit the properties. A property owner’s worst nightmare is to get a call or a letter from the homeowner’s insurance company with a large bill. When you have no fault insurance, the insurance company will cover you and pay at least a significant portion of the damages.
How No Fault Claims Work
A typical no fault insurance policy will have limits, so the coverage isn’t likely be completely comprehensive,
since you’ll have to pay out of pocket after a certain amount. Since you are the homeowner, you will have to file an insurance claim on behalf of your tenant as a no fault claim. The company will then review the claim through their normal processes and determine how much they will pay on the claim. Some of the damages the insurance company may cover include medical bills, lost wages and other related expenses.
Property Owners Shouldn’t Pay For Damage They Didn’t Do
Property owners should become very familiar with OREO insurance (Other Real Estate Owned). The main reason owners of multiple properties purchase OREO insurance is to protect their assets. When a home is vacant for an extended period, it is more likely to be burglarized. But even if a burglary doesn’t occur, there’s still the chance of natural elements causing damage to the home. OREO insurance will protect a property managers’ assets.
APIA has worked with property investors like you since 2001 to protect their assets. Any time, day or night. contact us to ensure your properties are properly covered.