January 7, 2022
Let’s face it, we’ve all heard horror stories of tenants destroying properties. This is a common danger that all landlords face. The best way to protect your property is with landlord insurance.
What is landlord Insurance?
Landlord insurance is designed to protect your investment property from any loss or damage caused by insured events and loss of rental income. Insured events can include things like storms, floods, and fire. Depending on the insurer, landlord insurance can also include damage or theft by tenants—this is typically an optional policy.
As a landlord faced with damaged property, you’re not only stuck with the costs of repairs to your structure, but you also are faced with the stress of going weeks, or sometimes months without rental income. For some landlords this may not be too big of an issue but for the vast majority it can potentially lead to financial ruin. But, if you have a landlord insurance policy, you could pick up coverage that includes damage by tenants and loss of rent when the building becomes unavailable due to loss or destruction from an insured event.
It goes without saying that even good tenants can cause damage to a rental property. A simple game of catch could end with a ball smashing through a bedroom window, and severe bathroom floods can occur simply from a clogged toilet. Both of which, can cost you greatly in repairs. If these are fears you have for your property, you can pick up a landlord insurance policy that includes things like water damage, accidental glass breakage and liability cover.
Another common issue you may be faced with as a landlord is having a tenant refusing to pay rent or vacating your rental property without giving you notice. Rent default can help to cover you when a tenant leaves your rental property without notice, is legally evicted from your property, or stops paying their rent, providing you with stability of earnings while you find a replacement tenant. Additionally, you can also cover yourself in the event of your sole tenant passing away.
It goes without saying that any insurance policy you’re looking to purchase requires an in-depth read through by yourself and your insurance agent. It is also true that it may take some time, research, and effort to find the policy that satisfies all your needs. Although, the sense of safety, security, and financial protection you can arm yourself with by purchasing a landlord insurance policy makes it all worth it. The fact of the matter is you never know what could happen! Why not prepare yourself while you still can?