Not sure what landlord insurance is, or why it’s important?
Let’s shed some light on the situation!
Like any form of insurance, it is a safety net. A contingency plan for when unexpected things happen.
What happens when there is a leak from a shower that causes damage to your home?
You’ve got home insurance to protect you.
What happens when someone crashes into your car?
You’ve got car insurance to guide you.
So it’s understandable that you’d have landlord insurance for your rental property – to protect you and your investment.
Although there is no set percentage, there is always a good chance that with sourcing the right tenants, that you’ll have renters who respect your property, pay rent on time and look after your investment. However on the off chance you secure bad tenants, landlord insurance is vital in providing security for your property.
A well designed insurance policy can protect you from lawsuits by tenants for injuries or from losses to your rental property caused by everything from fire and storms, to rental arrears…all the way through to illegal drug labs, tax audit and covering the costs to change locks.
The good news about landlords insurance, is it covers rent loss in all types of situations including this one (some insurers will cover until the property is re-tenanted and other are capped at a certain amount of weeks).
We can’t control everything that happens to a tenant, and this is why landlords insurance is so important.
For a reasonable annual fee, you can have peace of mind incase something out of your or our control occurs. Just because your tenant loses their job, doesn’t mean your bank won’t put a hold on your mortgage payments. As a result, we can’t stress the importance of landlord insurance enough.
Protect yourself and your investment by arming yourself with the right kind of insurance. It may seem like an unwelcome extra expense, but you will be so grateful you have it if and when things go wrong.
Need advice on landlord insurance? Talk to our team!