In addition, water backup and sewer overflow riders can help protect an investor from damage caused by water backing up through sewers or drains or sump pump overflow or failure. If you buy an older home, consider purchasing ordinance or law coverage to help cover repair costs in the event build- ing codes have changed requiring upgrades to previously acceptable building standards.
financial risk. Generally speaking, higher limits mean higher premi- ums, which can add up over time. Research the deductibles that apply to different types of coverage on your policy. A lower deductible will increase the cost of your premium but could save you a lot of money if an accident occurs on the property. On the other hand, a higher deductible may keep a premium low but requires more out-of-pocket expense in the event of a claim.
SETTING LIMITS AND DEDUCTIBLES Limits and deductibles are two sig- nificant terms for an investor to under - stand. Limits represent the maximum amount an insurer will pay in the event of a claim. Deductibles, however, are the amount the insured party pays before insurance coverage kicks in. When setting limits and deduct- ibles for your landlord insurance policy, choose coverage amounts carefully and consider your overall
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