If you have an investment property or are considering purchasing a new investment property, it is important to consider having landlord insurance. Apart from purchasing your own home, this can be the next biggest investment you will make. Think of landlord insurance as like a safety net. Hopefully you won’t need to use it, but it’s there in place if you need it. Always expect the unexpected!
You may think you are covered as you have the best property manager in the world managing your property. However, if your claim exceeds the bond held for your property, your refund may be restricted to the total of the bond. This may not cover all of the bills incurred and you may be out of pocket.
The typical cost of landlord insurance can cost a few hundred dollars and for some owners, it can be less than one week’s rent. It can protect your property against a variety of situations.
Rental Loss or Default
Loss of rent due to default, broken leases, death of the tenant, denial of access or tenant hardship. Legal expenses incurred.
This covers malicious or intentional damage to the property by the tenant and/or their guests. One of the most common issues now are house fires caused by tenants charging smartphones. Other damages can be caused from. Some policies also cover pet damage.
Covers when the tenant or their guests injure themselves on the property (ie. a faulty light switch or torn carpet causing a trip)
Theft by a Tenant or Their Guest
Theft of items or damage which occurs as a result of a break in.
The cost of the policy is tax deductible!
Just remember to shop around and do your research, not all policies cover the same issues. Check the terms and conditions and know what you are being covered for and the excess that applies if you make a claim.
With the right landlord’s insurance policy in place and the best property manager you can find to manage your property, this could be the best investment you could make!