Get Landlord Insurance for Rental Property

With so many affordable bargains in the housing market, people are beginning to purchase real estate as an investment again – or, if they can’t sell their home quickly, converting it to a rental property.  But are you prepared to become a landlord?

I highly recommends any owner carry landlord insurance.

There are several things you want to make sure are covered by your landlord policy.  Most importantly, your policy will cover you against damage to your property.

For example, if there is a fire that makes the property uninhabitable for a period of time, your insurance will not only cover the repairs, but also the lost rental income during the period you’re unable to rent it out.

Your policy should also cover legal disputes with tenants.  For example, if your tenants have stopped paying rent, but have not left the property and you need to take them to court, your policy should cover your legal expenses.

Finally, there are certain situations in which your property might cause damage to your tenants’ property.  This is a sticky situation.  First of all, your tenants should have their own renters insurance to cover their personal property.  However, if you are negligent in addressing an issue that ultimately causes damage to your tenants property, you need to be covered. 

For example, your tenant notifies you several times that the roof is leaking when it rains, but you neglect to have the roof repaired.  If the roof collapses and destroys some of their furniture, you are responsible.  However, if the tenant has not made you aware of the problem, you are not negligent.

This is  just a small amount of information I offer my clients looking to buy properties.  Call me today to discuss ways to help you buy rental properties at a good value.

Thanks Robin Jones for the information.