Archive for category Home Owners Renters
Why Get Landlord Insurance
Posted by admin in Home Owners Renters, Insurance on November 6, 2011
If you are a landlord and the home you own is being rented, the smart thing to do nowadays is to have landlord insurance. To protect yourself from a lawsuit you have to be proactive, it just pays to be smart in today’s world with injury claims filling up every court. You have insurance on your life and your car, only makes sense to protect your most valuable and expensive possession too.
With the housing market in total shambles, and more and more people looking to rent a home rather than buy one, you must protect your home with landlord insurance before you rent it to a prospective tenant. If you look at a recent survey, 2 out of every 5 landlords have either experienced tenants causing severe damage to the dwelling or the tenant has skipped out owing back for months of rent. As a landlord you cannot expect a tenants security deposit to make up for the loss incurred by damage or default on rent, because the deposit is a small portion of the potential damage a tenant can cause in your home.
Trying to save some money by not getting insurance can be a very costly mistake down the road. You are putting the property at risk, and putting your entire investment at risk by doing so. Even with a tight rental agreement and a substantial security deposit, half of landlords interviewed said the cost involved to make up the loss far outweighed the savings by not having that policy in hand.
In recent years rental properties have become more and more popular because there is no obligation long term for the renter. Repair costs are put on the landlord, and many times years of neglect are not obvious until the tenant moves out. The repair bills at that point can be enormous, and this is only regular wear and tear. Only takes one or two bad apple tenants who destroy property causing extensive damage that is not normally covered under your home owners’ insurance policy. That leaves the landlord to cover repair bills that can be in the tens of thousands.
Even if you think you can save a few dollars because you have a home owners’ insurance policy, take a few minutes and read the policy carefully. You are not covered for damage by tenants and for tenants who fail to make their rent payments. Take action before you have a tenant occupy your home, and purchase a landlord insurance policy to protect your investment for years to come.
What You Might Need To Know About Landlords Insurance
Posted by admin in Home Owners Renters, Insurance on November 3, 2011
In today’s real estate market-insurance is a hot commodity. Especially for those of you who have decided to try their hand at property management. What can landlords insurance do for you? How can it secure your future as a professional property manager? And what does it offer you that in turn can be offered to your clients?
Landlords insurance is a simple policy meant more for the property owner than those renting it. It covers everything owned by the manager on said property but not that of the tenants. However, this insurance policy can cover the tenants’ property in the instance that damage is incurred at the fault of the manager. Typical coverage includes any damage to building by weather (ie. Tornado, hurricane, snow), damage incurred by fire or earthquake (ie. Loss of property, items on property, or damage to building and surrounding land), such insurance policies usually cover the possibility of theft as well. Keep in mind when looking to purchase a landlords insurance policy that there are plans to cover extenuating circumstances as well: terrorism, legal protection, rent guarantee insurance or even liability insurance. Depending on the size of your property(s) and the location you may or may not want to look into such alternative and optional policies.
While for the most part, these types of policies were created at the benefit of the property owner. It transfers the responsibility of replacing material and items on the property or recompensing for the loss to that of the insurance company and not the manager. The landlord’s insurance policy will also relieve some of the tenants’ stress in the event that damage or theft occurs not through their own responsibility but through that of their landlords. It is imperative that the details for such policies are understood by both the landlord and the tenants. This way both can feel secure in their coverage. Such policies also have additions to the benefit of the landlord which include insuring the possibility that they may find themselves liable for one thing or another.
Owning property can be a simple way to earn some extra cash, however, without the proper coverage and know how it can be an easy way to lose some cash too. Be sure to research what policies are available to you when starting out as a property manager. Educate yourself and your tenants on what kind of coverage is offered and what this policy entails. Having such insurance will pave the way to you having a reliable secure financial future in the real estate market. In so far as it will keep what you own covered in case of accident, whatever that may be.