Making the transition from homeowner to landlord in Little Rock is an exciting step toward building wealth through real estate. By turning your home into an investment property, you’re not only securing a new income stream but also tapping into one of the most proven ways to build long-term wealth—real estate.
However, becoming a landlord comes with responsibilities, particularly when it comes to ensuring your property and managing liability risks. In this article, we’ll walk you through the essential steps to safeguard your investment, focusing on closing the gaps in your insurance coverage.
Get a Landlord Insurance Policy for Your Little Rock Property
The first step in protecting your investment property is to get landlord insurance. This policy is designed to cover your rental property as well as any additional structures on the premises, such as:
- Additional buildings: Sheds, garages, or storage units
- Tenant-related equipment: Appliances like washing machines, refrigerators, or tools provided for tenant use
In addition to property damage, landlord insurance can also help cover liability risks related to events that happen on your Little Rock property. With coverage options like Legal Defense included, you’re protected in the event of lawsuits related to:
- Libel or slander
- Accidental property damage
- Wrongful eviction claims
Increase Liability Coverage with an Umbrella Policy in Little Rock
Being a landlord exposes you to greater liability risks than typical homeowners. An umbrella insurance policy offers an added layer of protection by increasing your liability limits beyond what your standard landlord policy provides.
Here’s a real-life example of why this extra coverage is essential:
A landlord in Little Rock didn’t act quickly enough to address a reported issue with a faulty boiler. Shortly after the tenant informed them, a toddler in the household was severely scalded and required months of costly treatments. The settlement? A staggering $3 million—the full limits of the landlord’s insurance policy.
With an umbrella policy, you can avoid finding yourself in a similar situation and ensure you have enough coverage to handle large-scale liability claims.
Eliminate Hazards on Your Property in Little Rock
To further reduce the risk of potential accidents, it’s crucial to inspect and mitigate hazards around your rental property. Here are a few areas to address:
- Stair Railings: Ensure railings are sturdy and not at risk of breaking or becoming loose.
- Trip Hazards: Walk through the property to eliminate uneven surfaces or large steps that could cause someone to trip.
- Swimming Pools: If you have a pool, make sure it’s enclosed with a fence and a self-locking gate to prevent children from entering unsupervised.
While it’s impossible to eliminate every liability risk, taking proactive steps like these can significantly reduce your exposure to accidents and claims on your Little Rock property.
How We Can Help Landlords in Little Rock
Owning an investment property in Little Rock can be incredibly rewarding, but it also comes with its share of risks. We can’t guarantee you’ll be fully protected from every potential liability, but we can help you put together a comprehensive insurance plan to minimize your risks.
Let’s make sure your coverage is up to the task. Schedule a consultation with one of our licensed agents today, and we’ll help you find the right coverage that fits your unique needs as a landlord.
