Being a landlord undoubtedly has its financial benefits. But it’s important to realise that with these benefits also come distinct risks as well. What would you do for instance, if your tenants all of a sudden disappeared, owing you a month’s rent? Or what if the rental property became damaged and the deposit wouldn’t cover the costs? Most landlords don’t account for these eventualities, but they are in fact very common occurrences. Having Landlord Insurance Cover however, will protect you from these situations as well as offering a number of other benefits.
You’ll Never Lose Out on Rent
Without landlord insurance, you’d have very little recourse if your tenants all of a sudden stopped paying you rent. Naturally, you’d thrown them out. But what if they disappeared altogether, owning you a sizeable amount of money in back rent? With most decent landlord insurance policies, you’ll be covered for any owed rent up to an agreed maximum. As an added bonus, this policy will also apply if you are losing out on rent as a result of waiting for repairs to be done to your property.
Protect Your Investment
Your property is not just the source of a bit of extra cash here and there. It is an investment. And one of the chief concerns that come with an investment such as this, is whether the tenants are going to take good care of your property, so that the investment doesn’t lose value. Naturally, if they’ve paid a bond or deposit, you’ve got some security. But in some cases, the occupants may leave the property in such a state that their deposit won’t cover the damages. You can always try and get more money out of them. But it’s very unlikely they’ll be willing to pay. With landlord insurance, you’ll be covered for all damages, meaning you have peace of mind that your investment is secure.
Don’t Make The Same Mistake
Damages to your property and tenants disappearing whilst owing rent are two of the biggest financial threats landlords face when they invest in rental property. And no matter how frequently such instances re-occur, so many landlords fail to learn from their mistakes by investing in landlord insurance. Don’t make the same mistake as them. The benefits are plain to see, so make the most of them.