Is paying for landlord insurance necessary? It's a question that's undoubtedly crossed the mind of every investor at some point. Our answer? Yes, without a doubt. Landlord insurance is a modest, tax-deductible cost that may save landlords thousands of dollars over time, making it a must-have for all property investors.
If you're a landlord, there are several reasons why you should consider paying for this specialised insurance. After reading this piece, you'll be filling out an application for coverage. Read on!
1. Save More Money
One way landlord insurance can help you is by lowering the cost of maintenance work. You will be covered for a wide range of expenditures, including call out charges, materials and components, and repair work, for a modest monthly fee.
Instead of gathering the money and risking your bank balance, you may have peace of mind knowing you are completely protected in the event of a tragedy!
2. Protects Against Rental Loss
You can cover your property for rent loss, but only during periods of vacancy.
Rental loss occurs when your property is destroyed, maybe by a storm, and becomes uninhabitable for an extended period.
While such tragedies are covered, remember you'll have to provide proof of everything, including the precise rental loss you have suffered.
3. Protects Against Rent Default and Theft
Unfortunately, a renter's financial or personal situation might change, and they can go from being an excellent tenant to a source of concern.
They might stop paying rent for a while until one day your property management notifies you they've left town.
In situations like this, a landlord insurance policy can cover you for rent defaults and, if ever, theft.
4. More Protection Than Homeowners Insurance
Although both landlord insurance and homeowners insurance cover your property, they are not the same sort. Homeowners insurance only protects residences the owner occupies.
When you rent out your house to someone else, your homeowner's insurance no longer covers you. This is why landlord insurance is necessary; not having it exposes you to property disasters that may drain your bank account rapidly, erasing all your hard-earned assets.
5. If Your Property is Being Sublet
Another possible issue for landlords is subletting. If your tenant arranges a subletting agreement with someone who didn't undergo your routine tenant screening process, they might not treat the property as kindly.
Since they exist outside the original lease agreement, they are not liable for any damages caused; This is where landlord insurance can help.
6. Cover Your Legal Fees
This coverage is essential for landlords who wish to maintain complete control over their property. While everybody wants a smooth tenant stay, if something goes wrong, you could be in for some lengthy and costly legal proceedings.
When a renter does anything illegal, you may need to go to court to settle disputes. If this occurs due to a loss of rent, landlords can benefit from having legal fees covered.
Conclusion
The bottom line is that landlord insurance needs to be more present in every investor's portfolio.
While landlord insurance policies vary in price, they often cost only a few hundred dollars each year, which is an insignificant amount compared to the peace of mind it affords.
Find the best landlord insurance policies for your assets with the help of New Wave Insurance! Our team of Gold Coast insurance specialists does the heavy lifting for you when it comes to finding the right insurance, negotiating on your behalf to find the best value policies. Book a free 15-minute insurance consultation with us now!