What Is Landlord Insurance?
Landlord insurance covers the damages that tenants wreak on rental property. Depending on the policy, you could add these optional covers:
· Burglaries or theft by guests, tenants, and general burglars
· Vandalism of all types
· Loss of rental income because a tenant broke the lease or defaulted
Many policies also include cover for guests staying overnight.
What Does It Cover?
Before signing up, check the exclusions precisely. Most insurance policies agree to cover the following situations:
· Damage caused by the tenant, their guests, and their pets.
· Public liability insurance in case of injuries to visitors.
· Loss of rental because of insured events. This situation could include cover for tenant’s defaults, evictions, and death in persons without next of kin.
· Expenses for re-letting the place after a rental loss.
· The cost to remove the tenant’s items.
· The cost of changing the locks after a tenant defaulted.
· Legal fees that pertain to eviction and rental loss.
· The cost of hiring a professional auditor for assistance with tax audits.
· Basic maintenance costs.
· Tenant’s cost of repairs claims.
· Damage due to normal wear and tear.
Other standard exclusions in landlord insurance may include general maintenance expenses, the costs of repairs by the tenant, rental income due to not having a tenant, and general wear and tear.
Benefits of Having a Landlord Insurance
Landlord insurance is something that you hope never to have to claim against, but that’s not realistic with tenants today. No matter how carefully you vet your tenants, you have no guarantees that they’ll leave your place in good shape. You also can’t guarantee that they’ll never default.
Landlord insurance helps cover losses sustained due to tenants or their guests.
It’s wise to have adequate home and contents cover for guests staying over at the property. If someone is robbed of valuable jewellery under your roof, the guest might sue you for damages. Civil suits can quickly turn your dreams of owning an investment property into nothing.
Why take the chance when specialised insurance covers you fully?