How does landlord insurance affect your life?
Landlord insurance is something that seems to confuse quite a few landlords. It isn’t a legal requirement so it could be seen it as a waste of money, some may even think that it only covers if their property gets set on fire.
So it gets forgotten about, with the excuse that ‘I will get round to it.
What people don’t realise is that it covers so much more than the occasional arsonist tenant.
So next time your landlord comes to you and asks about landlord insurance, send them to this blog post and make sure they understand all the benefits from that monthly payment.
Protecting their investment
It is important to remember that their property is an investment, it is something that not only brings in a monthly income but will continue to do so and something that can be inherited, setting up their family with a shortcut into the property industry.
The investment won’t bring in much money if it is a fire shell, buried in water damage or any other kind of damage.
A lot of trust is required when renting a landlord’s property out to a complete stranger and having insurance will give landlords peace of mind.
If a tenant decides to stop paying rent (breaking their rental agreement). It may be difficult to recover those missed payments (the tenant is definitely going to be reluctant to pay up)
With many landlords insurance policies the landlord will be covered for loss of rent, ensuring that the earnings are covered. It even applies when the landlord is losing out on rent because they are waiting for the property to be repaired.
Repairing the property
Now if an insurer is willing to pay the rent the landlord misses while the property is being repaired, the insurer is going to want the property fixed pretty quickly.
So when it comes to damage made by the tenant the landlord will receive compensation for how much it takes to replace or repair whatever was damaged. This means that the landlord can be sure the property will be back to living standards as soon as possible.
Like we mentioned earlier it is the landlords choice but lets imagine the landlord has read this blog and decided to purchase landlord insurance (hooray)
So a landlord will then hopefully shop around and find the right plan that suits them (comparison sites are a life saver). There are usually flexible payment options that do their best to suit everyone.
If a landlord has more than one property then it is much like have multi-car insurance. They will find their cost is greatly reduced for the second property.
So in conclusion, insurance is good. It brings peace of mind, it helps when repairs come at inconvenient time, tenants can be unpredictable and landlords insurances means that you can be sure that there will never be irreparable damage to your property.
Give us your thoughts on landlord insurance, @LettingCheck