Savannah’s real estate market continues to attract savvy investors, given that it boasts the historic attraction, a rising demand for rentals, and the ambiance of coastal living. Be it flipping homes, managing long-term rentals, or creating a larger portfolio, it should be protected, just like finding the right property.
One key area that investors often overlook is insurance. Without adequate coverage, a single storm, fire, or lawsuit could cast a shadow over both your investment and financial future. Here, we will discuss the major insurance coverages every real estate investor in Savannah should consider.
1. Start with Home Insurance in Savannah, GA
If you have bought a property that you intend to renovate or keep as a second home, home insurance in Savannah, GA, will be your first layer of protection against unfortunate events. General coverage includes:
- The structure of the home
- Personal property kept on-site (tools, fixtures, etc.)
- Liability if someone gets injured on the property
But beware- a standard home insurance policy usually does not cover a property being rented or under construction. This is where specialty coverage comes into play.
2. Don’t Skip Rental Property Insurance
In case you plan to rent it out, either on a long- or short-term basis, be sure you either have or take rental property insurance in Savannah, GA (sometimes called landlord insurance). This coverage is intended for income-generating properties and normally covers the following:
- Dwelling coverage for the building itself
- Liability coverage for tenant or visitor injuries
- Loss of rental income if the property becomes unlivable after damage
Landlord or rental insurance offers you peace of mind, solving all risks related to the tenant, which homeowners’ insurance does not cover.
3. Consider Flood Insurance—Even if You’re Not in a High-Risk Zone
The beautiful river location of Savannah also enters the flood-risk category. Many parts of the city fall under flood-prone areas, and properties outside of FEMA’s flood zones can also be subjected to flooding due to periods of heavy rainfall or storm surges.
That is why it is a good idea to seek a flood insurance quote in Savannah, GA, especially if the property is located along the coast or in a low-lying area. Regular home or rental insurance does not cover water damage caused by flooding. For flood insurance, buy it separately through an insurer recognized by the National Flood Insurance Program (NFIP) or a private insurer.
4. Bundle and Save Where You Can
Handling several properties? Insurance companies may offer lower rates when you bundle your insurance policies together. Also, discounts may be offered for installing security devices, strengthening roofs, or other risk-reduction measures.
Work with a local insurance advisor who knows the Savannah market. They can help you find the right combination of homeowner insurance, rental property insurance, and flood protection so you will neither pay too much nor be underinsured.
Conclusion: Insurance Is an Investment in Your Investment
The property markets in Savannah provide numerous opportunities; however, with such opportunities come an inherent risk being the weather and potential damage to properties. With the right mix of protection, from home insurance, specialized landlord policies, and clear flood insurance, your portfolio will remain protected for continued profitability.
Need assistance in knowing your insurance options? Savannah Insurance Advisors would be pleased to provide expert guidance and customized coverage solutions for your investment properties. So, call us today at (912) 925-6916.
FAQs
- Do I need both home insurance and rental property insurance for my investment property in Savannah?
No. If you’re renting out the property, you should have rental property insurance in Savannah, GA, not standard home insurance. Landlord policies offer protection tailored to rental risks like tenant-caused damage and lost rental income.
- How can I get a flood insurance quote in Savannah, GA?
You can get a flood insurance quote in Savannah, GA, through a local insurance advisor directly from the National Flood Insurance Program (NFIP) or from private insurers. Make sure to provide details like property elevation, location, and construction type to get an accurate estimate.
- Is flood insurance required for investment properties in Savannah?
Flood insurance isn’t always required by law, but it may be required by your mortgage lender if the property is in a designated flood zone. Even if it’s not mandatory, it’s highly recommended due to Savannah’s coastal and storm-prone geography.