How Rental Property Insurance Can Protect You And Your Investment
Renting out property you own for other people to live in or make use of is a wonderful way to bring in some passive income, money that can help you recoup your investment. However, it isn’t all just collecting the rent checks, becoming a landlord also brings a number of risks and responsibilities. Keeping your investment safe is very important, so you need to be properly insured.
Standard insurance policies for homeowner’s are meant to protect homes occupied by their owner, so they aren’t proper coverage for a rental property. Fortunately there is rental property insurance coverage available for landlords that is specifically designed to fulfil the coverage needs of landlords.
As a landlord you should consider the following overage options for your rental properties!
Liability Protection – It’s a fact of life that accidents can happen, so landlords must protect themselves from being held liable if tenants or visitors on your property sustain any injuries. It’s essential that you have a rental property insurance plan in place that includes liability protection so any medical bills and legal expenses related to injuries on the premises will be covered.
Property Damage – Property damage to rentals is fairly commonplace, and may be caused by a variety of dangers like storms, fires, theft, or vandalism. Having the proper insurance in place will help you to make repairs or rebuild damage suffered by your rental property, thus protecting your investment.
Legal Expenses – By renting out your property you take on certain legal obligations and will be exposed to the possibility of disputes taking place with your tenants. By having rental property insurance in place your legal expenses, including any lawyer fees, will be covered if it becomes necessary for you to take legal action against tenants such as holding them libel for property damage, or needing to evict them.
Rental Income Loss – If something happens to your rental property that makes it uninhabitable like fire or flooding, and that type of damage is covered by your insurance, you will be eligible for compensation for the rental income you have lost while repairs are being made.
Personal Property – Your tenants are responsible for insuring their own personal belongings, but as a landlord you are likely to have personal property you need to maintain on-site like appliances, maintenance equipment, and in some cases furnishings. Those items can be covered by your insurance policy.
The following are some of the advantages having rental property insurance in place can bring you!
Safeguards Your Livelihood – Being a landlord is a business, so you need to be able to safeguard your livelihood with proper insurance that covers potential liabilities and minimises the risks. Insurance helps you make sure your rental business enjoys smooth operations even during difficult circumstances.
Safety Net – Your rental property insurance provides you with an important safety net that will shield you from suffering any significant financial losses that might be incurred by property damage and other factors that would otherwise mean losing your rental income.
Knowing that your investment is protected by your insurance will bring you peace of mind so you can enjoy receiving those rent checks without a lot of stress and worry!
