One of the biggest stresses involved with renting a property has to be the headache of landlord insurance cover and potential claims. It is often best to do the homework involved in finding the right cover based on your circumstances – such as if you own a single dwelling or need to insure a whole block of flats – as well as trying to ensure that you are fully aware of the most common issues surrounding insurance claims made by landlords.
By far the most common insurance claims made by landlords are due to loss of rental income. The majority of landlords own less than five properties and rent to middle-to-low income families. In these difficult financial times for the average person, even the best tenants can fall to financial woes and end up not making rental payments on time.
As an example, a tenant may lose their job or suffer financial issues due to a serious medical issue arising – not because that are ‘bad tenants’. No landlord wants to instigate a long and protracted collection procedure, so ensuring that you have landlord home insurance coverage for loss of rental income as a part of your insurance policy is key to avoiding the knock-on effect of having financial woes yourself.
Water Damage
This landlord insurance policy covers your property against water damage and is one of the most commonly claimed in the industry. Even though this type of damage is often accidental or caused by a faulty appliance or a burst pipe, it is a necessary insurance policy for any landlord, and you can expect to have to claim water damage at least once during a long tenancy.
Water damage can be devastating if it goes unnoticed for a long period of time, which is why it is important to have regular check-ups that include a full system overlook by a registered plumber at least once a year. This way you are onto a problem before it gets out of control – meaning less time and cost spent on repair, and you will be covered in the event of a serious mishap on the property.
Property Damage
Next up on the list is issues arising with damage to your property. This damage may be accidental, environmental or malicious, but having the right landlord home insurance policy will give you a little breather while your issues are fixed. No landlord wants to be left to foot a huge repair bill, and property insurance will allow you to avoid potential issues.
This type policy covers damage done by tenants and their guests and includes things such as doors kicked in, windows smashed, and cover of the furniture within the property such as sofas and curtains that have been maliciously damaged.
This policy also covers accidental damage that may include a badly stained carpet that needs replacing, or cracked tiles and kitchen damage.
Death of a Tenant
One option to consider when selecting landlord home insurance coverage is the death of a tenant. This is actually not all that uncommon, and a good landlord will ensure that the matter is dealt with in a compassionate and caring manner, ensuring that the tenant’s family and friends have access to the property to take care of the tenant’s belongings.
It will be necessary to give the family enough time to take care of the property and belongings as well as ample time to clean and restore the property. Insurance against loss of income due to a deceased tenant will protect you for an amount of time depending on your policy.
Getting the right insurance coverage for your residential investment properties is important for any landlord because if a problem arises through your rental property, you should not be the one to foot the bill due to the actions or accidents of others.
Author Bio:
Emma Sneddon, a polymath who mostly writes about sustainable and alternative living solutions. She likes to write in the most effective ways to drive new sales and revenue for local businesses. She is a frequent article contributor to a number of online companies in Australia. Follow her on Twitter.