Do you rent to tenants and want to ensure that you’re covered?
Picture it – You’ve just handed over your residential space to a seemingly lovely couple with no pets.
Five months down the line they’ve bailed on their lease and left you with a pest problem, ruined carpets and furniture due to an unauthorized animal.
No one ever said being a landlord is ever easy. It’s not a job neatly summed up into collecting fat rent checks. Landlords have a lot of responsibility, and when something goes down, they’re the ones who have to pick up the pieces. Do you have a game plan for this inevitable day?
Check out these reasons why all landlords should invest in landlord insurance while you strategize.
Landlord Insurance: Income or Outcome?
Tons of landlords rely on those tenant rent checks to pay off the mortgage. Are you one of them?
While this is common practice, it’s quite risky without loss of rent insurance. No one wants to think about the worst case scenario, but it’s better to be prepared than avoid the topic altogether.
Fire, smoke, hurricane damage, and tornado damage are just a few of the unforeseeable and unfortunate disasters that can hurt a landlord’s cash flow. Can you afford to cover mortgage payments out of pocket for an uncertain number of months of repair?
Not every tenant is irresponsible – some really struggle to afford the rising cost of living. Of course, your compassion won’t help you cover your lost income or pay to renovate for a new renter.
Insure Your Building
Building damage is a concern for anyone who owns real estate. While loss of income insurance will cover you during reconstruction, what will cover the cost of that construction?
The walls, the floors, and the roof will be covered in the case that you need to repair, or even rebuild, them. Kitchen and bathroom units are typically covered as well, but you may want to look into expanding your policy to protect additional units like a garage or shed.
Better safe than sorry, said every landlord ever.
Building insurance is almost always automatically included in landlord insurance policies because that’s how crucial it is. Without the brick and mortar that makes your residence, you can lose most of the value of your property.
Insure Your Contents
But wait, there’s more! The safeguarding of your property doesn’t end there.
If your place is even partly furnished, it’s wise to protect those items as well. Not only will you be protecting them from potential damage, but theft as well. Knowing that there’s a home burglary in the United States once every 18 seconds doesn’t feel good, but landlord insurance can help you feel better.
If you have any special pieces, you can even secure those from any mishaps. How about pieces in the garden or yard, or in the shed? Those can be covered as well.
You know that building insurance you need? It may cover the floors, but not the carpets on them. If those are destroyed in a fire, flood, or storm, they can be costly to replace.
As a basic add-on to your general policy, it’s a minimal yearly cost for its value. Remember, you will be getting brand new replacements for older possessions.
Are You Liable?
Owning real estate is a great investment, but it certainly has its risks.
Imagine this – You’re sued by your renter for an injury they sustained on your property; what’s your next move? Well, I hope you have a liability policy on your landlord insurance.
What if your tenant acts unlawfully and damages someone else’s property? It may be unfair, but you could be held liable.
Liability insurance will protect you from lawsuits that could bankrupt you. It’s usually bundled up in a standard landlord insurance policy, but finding the right policy is key.
Landlord insurance doesn’t come on a dollar menu, but it’s definitely cheaper than ending up on the losing end of a lawsuit.
Clearly, landlord insurance has many components. I promise this is one of the last ones for you to consider.
Since the risks to your precious property are so numerous, and no landlord can possibly be present 100% of the time, an emergency coverage policy is essential.
This is where being a landlord is especially un-fun. Burst pipes, failed air conditioning units, and broken toilets, are all mind-numbing nightmares for landlords to deal with. They can be wallet-numbing as well, but they don’t have to be.
With an emergency coverage policy, you’ll have servicemen for everything from pest infestation to break-ins available at any time, day or night, any day of the year.
We Can Help Protect Your Investment
With so many bells and whistles on any landlord insurance policy, it’s best to consult the experts for direction.
Contact the leading insurance authorities of Mooney Insurance Brokers directly to hear some reassuring guidance and get a quote on your coverage.