Protect an investment property with landlord insurance.
One of the best ways to protect an asset is with insurance. This is true regardless of whether you’re trying to secure a car, your possessions or, in particular, real estate. However, it’s not just the home you live in that can be insured; rental properties are just as an important an asset to safeguard from unexpected accidents. Even so, far too many landlords ignore the risks of leaving their rental properties uninsured, which may lead to serious consequences and/or financial loss.
This is where the right landlord insurance policy comes into play, and in this article, we’ll be exploring how this type of insurance works, and why it’s so important.
What is landlord insurance?
In many ways, landlord insurance is very similar to a standard home insurance policy. It takes care of the owner of an investment property in the event of an accident by providing protection for both the building and its contents, such as the fixtures and fittings. However, landlord insurance policies can also include some of the situations that are only likely to arise with a rental property, and therefore aren’t generally included in your standard home and contents insurance policy, such as theft of appliances/fixtures by a tenant. When taking out a policy, it’s important to check the types of damage your policy covers.
In addition, landlord insurance policies can be highly flexible, by tailoring in a way that is both cost-effective and provides you with an appropriate level of cover. For example, if your property is managed by a licensed managing agent, you’ll be able to save up to 10 per cent on your policy thanks to the added security their expertise brings to the table. Plus, it’s possible to pay landlord insurance monthly.
Why landlord insurance is important.
In addition to landlord insurance’s flexibility and the cover that it provides, there are a few key reasons why these policies are so important for everybody that owns a rental property. The first is that they can provide a safety net in the event of an accident, not just in terms of covering a building and its contents, but also by helping to protect against legal liability. This means that in situations where an accident, you won’t have to worry about being liable for the costs. Your policy may also cover any legal expenses associated with an accident.
Perhaps the most important element of landlord insurance, however, is that it can cover rental costs. This means that if your property becomes uninhabitable after an insured event, you won’t have to worry about losing the rental income you would otherwise be receiving. The amount of time that a policy accounts for in terms of rental loss can vary, but is typically based on how long it will take for your property to be returned to habitable condition.
Of course, as with every type of insurance, it’s important to understand the specifics of your policy and what sort of situations may or may not be covered. To find out more about landlord insurance and how it can help take care of your investment in real estate, contact Beyond Bank today.