Why you should purchase Landlord Insurance
Landlord insurance is a policy created specifically for landlords and covers them in the event of rent default, loss of rent, fire, theft and standard perils, tenant damage and damage to the building or furnishings that are owned by the landlord.
There is no law that states that a landlord must carry this type of insurance, but it can certainly assist in financially securing a landlord’s assets and protecting them in the event of issues that could potentially cause a financial hardship. In the event that a tenant doesn’t pay their rent, or if the rent is stolen, the mortgage on the property is still due; with landlord insurance, the owner of the property is covered in such incidences, securing their investment.
Landlord insurance comes in a variety of policies that cover a wide array of damage and incidences. Fire, water damage, and any other of the standard perils associated with homeownership can be included. In addition to those types of cover, there is also protection for loss of rent, contents coverage up to a certain amount, and property owner liability. This protects the landlord should the tenant fall ill or if injury arises while he/she is living in the property. Standard residential policies are not specialised enough to protect landlords from such occurrences, making this type of insurance a necessity.
Many landlords choose to add landlord contents insurance to protect items that they own from fire, theft and o
ther risks.
The decision to purchase a rental property as an investment is a large one and should not be taken lightly. Landlord insurance ensures that your investment is secure and protected, taking much of the worry and stress out of renting property.