Being a landlord can be extremely stressful at times. Many people have the ill-conceived notion that landlords simply kick back and collect money from their tenants. This couldn’t be further from the truth. Being a landlord means constantly keeping on top of your payments and the maintenance of your property. You have a responsibility to your tenants to ensure that the buildings are safe and well-maintained. Before letting any property you need to take out an insurance policy for all the property that you own. Landlord insurance differs significantly from regular home insurance in a number of different ways. You should be aware of all the options available to you so you can make an informed decision.
If you own property and are letting it out then the absolute minimum level of coverage you should have is building insurance. This covers structural damage that may occur to the property from fire or water damage. This doesn’t cover the contents of the property however, which is certainly a problem if you’re letting out fully or partially furnished housing. Contents insurance can be purchased separately though it should be noted that this does usually not cover malicious damage caused by tenants. Unfortunately this can occur when there are disagreements so it is better to try to avoid such situations. You are covered for any intentional damage to the structure of the building however though it can sometimes be difficult to ascertain whether the damage was done intentionally so it’s best to be as well covered as possible and let the insurance company investigate.
Rent protection insurance is another type of cover that you should seriously consider. As the name suggests – it covers you for non-paying tenants. Unfortunately this is something almost every landlord will have to deal with at one point and it is much less stressful when you are insured against it. This type of cover can also include legal costs should you need to take a take to court. This is a big plus as legal fees can soon add up. You should check the details of your policy to see if this is included.
As a landlord your time is precious and often in short supply. For this reason it is a relief to know that there are many excellent landlord insurance companies online who are able to set up your policy directly over the internet. You should look around for a company who will provide the cover you need at the best possible price. Get as many quotes as you can so you can make an informed decision.