Do you need insurance for an NJ rental property?

The short answer is yes. You want to protect your rental property in case of loss. One of the best things you can do to protect your property is stay up to date on current weather patterns. New Jersey has been having all sorts of wacky weather over the last couple of years including earthquakes and tropical storms.

The type of rental property you have will also determine what type of insurance you need. Some insurance companies will not cover buildings that have apartments and retail space in the same building.

Picking great tenants is another way to protect your investment. Good tenants will maintain your property with care. It’s important to screen tenants properly without being discriminatory towards age, gender, race or religion.

Some people wonder is it a good idea to invest in properties in NJ. It really depends on your appetite for risk. In the current market, property prices are at the lowest they have been since 2008, however they are starting to rise again. There’s always the risk that your investment might not generate the cash flow that you thought it will. Can your financial portfolio handle that?

Need the specifics on Rental Property Insurance? Read more.