Renting a property takes work on the part of the owner. Many individuals choose to turn this task over to a property management company. Before doing so, make certain you have the right insurance to cover any damages. This protects you in the event something goes wrong, and many property management firms require it before taking on a client. What are five practical examples of landlord insurance claims?
Research shows tenants don’t care for a property as if it were their own. They don’t have an investment in the property and therefore might not take care of it as well as you would. Imagine taking possession of a rental property at the end of a lease only to discover hidden damage that wasn’t discovered during the walk through. This damage must be repaired before the property can be rented again. Landlord insurance helps to cover the costs of this damage, and this type of policy may be obtained through insurers such as Roger Butler Insurance Agency. Landlords don’t bear the full brunt of repairing the damage when this policy is obtained.
Rent Guarantee Coverage
Many landlords only own one rental property and don’t have the funds to cover the mortgage on this property without assistance. When a renter refuses to pay rent for any reason, the property owner must come up with the funds to cover the mortgage payment. Landlord insurance steps in to cover the rent until the situation is resolved. Thanks to the current global pandemic, many landlords find this coverage of great benefit as they navigate these difficult times. Every landlord should consider purchasing this type of protection for future situations such as these and more.
Accidents happen. Landlords do everything possible to prevent them, but the tenant also plays a role in maintaining the property. For instance, a property may sustain damage in a storm. The landlord won’t know about this damage until the next inspection or when the tenant calls to alert the owner to the problem. If someone is injured as a result of this damage before the necessary steps can be made to rectify the situation, the landlord could be held responsible. Landlord insurance helps at this time by covering the bills of the injured party so the owner doesn’t have to pay out of pocket.
Rental properties may not be covered by the owner’s property insurance. In the event the building burns to the ground, for example, and the landlord hasn’t listed the property as a rental, the standard homeowner’s insurance policy might not cover the cost of rebuilding. Rental properties need to be covered by a specific policy to protect the owner. Speak to an insurance agent today to ensure the right coverage is purchased to protect your investment.
Tenants can be rough on a home. They spill on the carpet, unplug a freezer while leaving it closed, or fail to replace filters in the heating and AC system, among other things. This leaves the landlord with numerous things to repair or replace when the tenant moves out. Landlord contents insurance helps to cover the costs of these repairs or replacements. Every landlord should consider obtaining this coverage to save money in the long run.
Look into landlord insurance today. The expense associated with purchasing this coverage is easily outweighed by the peace of mind the owner obtains knowing they are covered. No price can be put on this.