You know the way parents end up saying all the time, "Do what I say, not what I do."? That's what we're about to say to you. Do what we say, not what we do, because what we did was immeasurably foolhardy. We chose not to get property insurance on our rental property.

Perhaps this doesn't sound like a big deal to you. Perhaps you've never even considered rental insurance, and assumed property insurance was only for homeowners. Or perhaps you're a homeowner who doesn't bother with property insurance because you're quite sure nothing is going to go wrong with your home.

This is sheer madness. Property insurance, be it personal property insurance, rental property insurance, or commercial property insurance, is absolutely vital in the event of a disaster. Without it, you could lose everything. Believe us, we know, because we did.

Why We Advocate Property Insurance :

We put up Property Insurance not because we wanted to be shills for the property insurance companies. The truth is, neither one of us are involved with the insurance industry in any way, nor are any of our friends or relatives. We put up this site because we made a stupid mistake, and it cost us dearly, and we'd hate to see that happen to anyone else. We hope you'll read Property Insurance and learn from our mistakes (as we have), and buy yourselves Quality Property Insurance.

Property Insurance Policies vary in two primary ways -- the property insured, and the types of events that cause the loss. With regards to property, some policies cover basic equipment (furniture, inventory, building, and supplies), others insure money and securities (cash on premisis, irreplaceable records, etc.)

The events (perils) that cause the loss are defined as weather related (lightning, flood), or human related (burglary, arson, etc.). A Named Perils policy covers only those events that are explicitly named in the policy, whereas an All-Risk Policy covers all perils except those named in the policy. Usually an All-Risk Policy is your best bet, but they do come with higher premiums.

Reimbursement Methods :

In the event that you do file a claim, your method of reimbursement can come in one of two ways, on a Replacement-Cost Basis or an Actual Cash Value. Replacement-Cost policies cover the entire value of replacing your lost assets. An Actual-Cash Value policy only reimburses you for the estimated value of your assets at the time. These policies tend to have lower premiums, but if you actually have to replace your equipment, the payout may not be adequate.

Your premiums are based on many factors, including the types of perils your home or business most frequently faces, the type of building structure, the presence or absence of protective safety measures, and the proximity of your property to other high-risk areas. You may be able to take steps to lower your risk, thereby lowering your premium.