6 Irrefutable Reasons Why You Need Landlord Insurance
One way to mitigate these risks is by obtaining landlord insurance. While some property owners may assume that their building insurance or property manager’s policy will suffice, the truth is that landlord insurance is an essential safeguard that you shouldn’t overlook. Here are six reasons why you need it:
- Good Tenants’ Circumstances Can Change! As much as you might hope for the best when screening tenants, there is no way to guarantee their financial stability. Life happens, and tenants can fall on hard times, lose their jobs, or experience unexpected financial difficulties. In such cases, you might find yourself in a position where you are not receiving rent payments.
- Unforeseen Delays with Tribunal Action When it comes to recovering unpaid rent or resolving disputes with tenants, legal proceedings can take a considerable amount of time. A quality landlord insurance policy can protect you against delays where a more significant rent loss can occur.
- Intentional Malicious Tenant Damage and Theft Cover While accidental damage can occur in any rental property, intentional and malicious damage can cause significant financial loss. A landlord insurance policy covers you against deliberate damage or theft of your property or contents caused by the tenant or their visitors.
- Damage caused by Drug Production Drug production is a growing concern, and unfortunately, it can happen inside a rental property without your knowledge. Building insurance will not insure against this type of event, but a quality landlord insurance policy will.
- Death of a Tenant Regrettably, tenants can pass away inside a rental property. In such cases, forensic cleaning may be required, and the costs can be significant, including the loss of rent during the cleaning process. A quality landlord insurance policy will give you cover for such incidents.
- Pet Damage More tenants than ever before have pets, which can cause damage to your property. A landlord insurance policy can cover pet damage and give you peace of mind.
In conclusion, obtaining landlord insurance is an essential step in protecting your rental property investment. Make sure you speak to your property manager about the different types of landlord insurance cover available and choose a quality policy that is right for you. With the right insurance, you can enjoy the benefits of being a landlord while having peace of mind that you are protected against unforeseen events that can cause significant financial loss.