Assessing your coverage needs based on rental income and debt
Determining the appropriate amount of coverage requires a clear-eyed assessment of your financial liabilities and the income stream generated by your real estate portfolio. Unlike a single-family home, a multi-family property is both a residence and an active business enterprise. When calculating your coverage needs, the first and most critical figure to analyze is your total outstanding debt. This includes the primary mortgage on the multi-family property, any secondary liens, home equity lines of credit, and