Becoming a landlord both come with their privileges and liabilities. For one, you earn monthly revenue from your tenants. However, there are also risks involved in engaging in the rental property business. That’s why it’s undoubtedly wise to ensure that your stream of income is safeguarded if an unforeseen event happens.
There’s plenty of insurance that can protect your rental properties. This article will discuss the reasons you might need an insurance policy for your rental properties.
1. Financial Protection Against Damage To Property
One of the answers to financial success in the property rental business is making sure that your real estate assets for lease are well-kept and maintained. As time passes by, wear and tear will naturally appear around your property. Under the relevant law, it’s your responsibility as the owner of such properties to pay for their repairs.
However, there are multiple cases in the United States and Canada where properties sustained severe damage. Damages could perhaps arise due to a natural calamity that ravaged your town. The damage was so significant it’s beyond livable, or at the very least, unhabitable for the time being, resulting in a complete loss.
Sometimes, such damages can result from unsolicited human misbehavior. Perhaps there was malicious vandalism by the tenants of the property. In other cases, maybe there may be significant destruction to the property’s walls.
On a lighter end, damages can be relatively minute such as burst pipes, door jams, to mention a few. It’s so minimal that the responsibility of paying for its repair may cause arguments between you and your tenant.
Regardless of the scope of the damage, there’s no denying that there’s definite proof of financial loss and emotional burden on your end. Therefore, to avoid such losses, you can protect yourself financially by insuring your property.
2. Financial Protection Against Rent Default And Theft
Sometimes, unfortunate occurrences happen. Such events may mean an abrupt change in the tenant’s financial and personal condition. This is a disturbing incident for you as a landlord because the tenant may not have the capacity to pay the rent.
Worse, they may head off unknowingly without a trace. In some instances, these tenants may even bring a piece of the property with them. In other cases, a simple burglary can happen on your property.
In these unfortunate events, it can be a relief to know that financial losses resulting from these occurrences can be claimed through a landlord insurance policy.
3. Financial Coverage Against Lawsuits
Legal battles are fought in all kinds of businesses, and being a landlord doesn’t spare you from one. Sometimes, tenants will sue you because they believe you’re wholly or partly responsible for their injury. Such injuries may perhaps be due to slips and falls that occurred in and around your property.
The moment you’re found responsible for the incident, you’ll be compelled to pay for the damages dealt. The advantage of having well-placed landlord insurance coverage is that these policies can provide you liability coverage. This coverage would protect you should such disputes arise.
A Coverage That Goes A Long Way
Undoubtedly, all forms of risks linger in every corner of the rental property business. Being a landlord, you’re not safe from these risks. But you can do something about protecting your cashflow and assets should something unfortunate take place.
An undeniable fact is that, as a landlord, you need to include landlord insurance as part of your investment. This policy can help you in so many ways. It’s handy and will save you plenty of money in the long run.