At Walters and Company, we field countless questions about asset protection. The number one question? "What about insurance?"

Insurance has grown increasingly complex, and cookie-cutter answers don't deliver the unmatched experience our clients deserve. That's why we brought in an expert this month to provide the clarity you need.

Meet Our Expert: Leah Karstens

Leah Karstens is the owner of Professional Claims Service (PCS), where she serves as a consultant for insurance, construction, and claim law. She provides third-party reports and expert witness testimonies, bringing decades of specialized knowledge to complex insurance situations.

Beyond her professional expertise, Leah advocates tirelessly for our veterans, serving on the National Legislative Committee for VAREP with regular trips to Washington D.C. When we asked for her help with this crucial topic, she didn't hesitate to share her insights.

Here's what Leah wants every property owner to know:

"Remember: Insurance laws vary by state, and policies differ significantly. Today's policies are more 'à la carte' than the comprehensive coverage of the past. Always confirm coverage with your agent rather than assuming it's included."

Question 1: Does my policy cover loss of rental income? Should I purchase this coverage?

First, make sure you have a landlord policy, not a standard homeowner's policy. This is the foundation of proper rental property protection.

Loss of rental income coverage is typically standard on landlord policies but completely absent from homeowner's coverage. This distinction could mean the difference between financial stability and significant loss during a crisis.

This coverage only kicks in when a covered loss occurs—such as a fire that makes your property uninhabitable or severe water damage requiring extensive repairs. Leah highly recommends this coverage, especially if you depend on rental income to pay your mortgage.

Think of it as protection for your cash flow when your property can't generate income due to covered damage.

Question 2: Am I covered for tenant-caused damage?

The answer depends on whether the damage is intentional or unintentional. Unfortunately, intentional damage typically isn't covered by standard policies.

Common scenarios that often surprise landlords include wall painting or carpet damage, which frequently fall under "wear and tear"—considered a maintenance expense with no insurance coverage. These are normal costs of doing business as a landlord.

Leah's key recommendation: Always require tenants to carry renter's insurance. This requirement protects both you and your tenant, creating an additional layer of financial protection for everyone involved.

Question 3: What liability protection do I have, and why does it matter?

Landlord policies typically include liability protection that covers legal costs and medical expenses if someone is injured on your property and you're found liable. This comprehensive coverage handles tenant or guest medical bills, legal fees, and settlements resulting from unsafe property conditions.

Here's the critical detail: This coverage isn't mandatory, so you must conffirm it's included in your policy. Leah especially recommends this protection if you're financing the property, as lenders often require adequate liability coverage.

Consider the potential costs of a slip-and-fall accident or other injury on your property—liability protection is essential financial security.

Question 4: Do I need a landlord-speciffic policy or is homeowner's insurance suffficient?

You absolutely need a landlord-speciffic policy. This isn't just a recommendation—it's a necessity for proper protection.

Landlord policies offer coverage specifically designed for rental situations, including loss of rent, specialized liability protections, and potential tenant damage coverage. Standard homeowner's policies are designed exclusively for owner-occupancy and typically exclude or severely limit coverage for rental situations.

Using a homeowner's policy for a rental property is like using a car insurance policy to cover a motorcycle—they're simply designed for different purposes.

Question 5: What's typically excluded from landlord policies?

You cannot claim coverage for tenant belongings—and this is exactly why requiring tenant renter's insurance is so crucial.

However, landlord policies may offer limited "personal property" coverage for items you provide, such as washers, dryers, kitchen appliances, or maintenance equipment. It's important to determine the value of these items to ensure you carry adequate coverage for potential replacement costs.

Document what you provide and understand what's covered versus what's the tenant's responsibility.

The Bottom Line: Don't Leave Your Investment to Chance

Always review your policy thoroughly with your agent. Ask detailed questions and never assume coverage exists just because it seems logical.

Leah strongly recommends speaking directly with an experienced agent rather than purchasing policies online. While online purchasing might seem cost-effective, property owners who try to save money with DIY policies often

discover critical coverage gaps only after a loss occurs—when it's too late to fix the problem.

Remember: you get what you pay for, and cheaper isn't always better when it comes to protecting your investment property.

Need Expert Insurance Guidance?

If you have questions or need Leah's specialized services, you can reach her at:

• Phone:  920-248-1504

• Email:  leah@addedvalue.pro

Her expertise in insurance consulting, construction claims, and legal testimony can be invaluable for complex insurance situations.

Thanks Leah! From all of us at Walters and Company, we appreciate you taking time from your busy schedule to help us serve our clients better. Your expertise helps ensure our property owners have the protection they need.

Ready to review your property insurance coverage? Contact your Insurance Agent or Broker for a consultation. If you don’t have an agent or broker you trust, please reach out to us. We have several that we can recommend.

Call us: (720) 357-6655

Email us: rent@rentgowalters.com Visit us: www.rentgowalters.com