OWNING A USA INVESTMENT PROPERTY
INSURING YOUR INVESTMENT PROPERTY
The content on this page is reproduced from www.US-Property-Investment.com with kind permission from Richard Lillycrop.It is critical to arrange property insurance before or when closing the sale. This will cover the house's improvement value, the total value minus the land cost. Basically the rebuilding cost.
INBIB can act for you in this regard and source a reputed Company. If your property is held under your LLC, then it may be a case of which insurer will carry an LLC as opposed to your name. However be aware that some insurers may only provide you with cover for 30 days if the property is vacant.
The premium that you pay is based on the improvement value and location and a typical amount is $500-$1000 per year. Obviously if your property is in a hurricane area, then the premiums will be higher, this is typical in Florida for example.
If you buy a below market value property, then the improvement value could be higher than what you paid.
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Please Note - The information contained above should not be regarded as legal or tax advice and is our opinion only.