First time owners of rental property may not know how important it is to get landlord insurance cover because they think they do not need it since they do not live in that rental property. However, there are very many risks that landlord insurance covers. This article discusses some of those risks that you would be protected from if you have landlord insurance.
How sure are you that your tenant or his/her visitor will not sue you for damages if they slip and fall on an unstable staircase? The answer is that you can't be sure about that. Consider how hard it is to quantify 'emotional distress' in a court of law and you will get a picture of how much risk you are taking by not having landlord insurance. The policy will cover you in case a liability claim is filed against you due to an accident that can be attributed to a lack of proper maintenance of the rental property.
Lengthy Vacancy Periods
No owner of rental property imagines there will be an extended vacancy period. Consequently, many fail to prepare (for instance, putting aside some money to cover the mortgage) for such a time, and when it happens then their finances are stretched to the limit in order to meet monthly costs like mortgage payments. Landlord insurance can easily save you from draining your savings when such a vacancy persists. The insurance company will compensate you for the lost income so you will have no trouble meeting your monthly obligations as you look for another tenant.
Can you predict how much damage an earthquake may cause to your recently purchased rental property? How can you know that a distant river will burst its banks after excessively heavy rainfall and flood your rental property? It is not possible to foresee all the damage that Mother Nature can unleash on your rental property. That is why acquiring landlord insurance is a smart move since it insulates you from suffering when nature strikes.
Considering how much money, time and emotions that goes into the decision to acquire a rental property it is very wise to protect that property from both predictable and unpredictable dangers that may arise when you own that property. Landlord insurance is an important way to ensure your investment is safe from all the risks above. Look at the insurance as an investment rather than as an expense that can be foregone. Click here for more information on what this type of insurance can cover.Share