subject: Why Get Landlord Insurance [print this page] 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 todays 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.
by: Jennifer Biggins
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