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Understanding Owner’s Insurance: Why It’s Crucial for Property Owners

At Orange Realty Group, we understand that your property is one of your most valuable investments. Protecting it with the right insurance policy is essential to safeguarding your financial well-being and ensuring peace of mind.

Key Benefits of Proper Insurance

 1. Property Protection

  • Covers damage to the structure of the home (walls, roof, foundation) from events like fire, storm, vandalism, or burst pipes.
  • Often includes owner’s personal property left on-site for resident use (e.g., appliances, lawnmowers, furniture if furnished).

2. Liability Coverage

  • Protects you if a resident or visitor gets injured on the property and holds you legally responsible (e.g., slip-and-fall on icy stairs).
  • Helps cover legal fees, medical expenses, and settlements.

 3. Loss of Rental Income

  • If the property becomes uninhabitable due to a covered event (fire, storm damage, etc.), owner insurance can reimburse you for the lost rental income while repairs are made.

 4. Optional Add-ons

Depending on the insurer, you can potentially add coverage for:

  • Rent guarantee insurance → covers missed rent if residents default.
  • Legal expenses → if you need to evict a resident or pursue damages.
  • Building code upgrades → covers the cost of bringing repairs up to current building codes.

What It Usually Does NOT Cover

  • Resident’s belongings → renters need their own renters’ insurance.
  • Normal wear and tear (e.g., old carpet, paint fading).
  • Maintenance issues → like pest infestations or appliance breakdowns.

Owner’s insurance protects your property, income, and liability risks in ways regular homeowners insurance does not. It’s especially valuable if your rental property is a key part of your income or long-term investment strategy.

Orange Realty’s Owner Insurance Requirements

As the property owner, you’ll need to make sure you have adequate insurance coverage in place for your property. This should include protection against any potential damage or injury that could happen due to the occupancy, management, operation, or maintenance of the property. The insurance must comply with Nevada State law, and please note that any deductibles would be your responsibility.

We kindly ask that you list Orange Realty Group as an additional insured on all liability insurance policies related to the property. Please provide proof of this coverage within 15 days of signing the agreement. The liability policy should be approved by Orange Realty Group in terms of form, coverage, and amount, and should be no less than $500,000.

We’ll also need proof of fire insurance coverage, along with duplicate copies of your insurance policies, to be kept on file with us within 15 days of the agreement. The policies should include a provision that both you and Orange Realty Group receive at least 30 days’ written notice before any policy changes, default, or cancellation.

If at any point the required insurance coverage lapses or isn’t maintained, Orange Realty Group may step in to obtain the necessary insurance on your behalf. If that happens, we’ll notify you right away, and you would be responsible for reimbursing the cost of the policy plus a 10% administrative fee.

Tips for Choosing the Right Insurance Policy

  • Assess Your Needs: Consider the specific risks associated with your property’s location and condition.
  • Shop Around: Partner with an experienced insurance agent to find a policy that suits your requirements.
  • Regular Reviews: Reassess your policy every year to ensure it aligns with current property values and potential risks.

Need Help? Orange Realty Group Has You Covered!

At Orange Realty Group, we’re here to support you every step of the way. If you have questions or need help finding the right insurance policy, our team is just a call away. Protecting your investment and ensuring your success are at the heart of everything we do!