Importance Of Insuring Investment Property
Apr 29, 2019
No matter which asset you buy, the first thing that you get done after purchasing an asset is getting it insured. This may include a car, house, valuable jewelry, etc. Now when you buy a house, the next thing you jump to automatically is insurance.
What most landlords miss out on or don’t think of getting done is landlords’ insurance. The reason why we recommend this type of insurance is because a regular insurance may not be as comprehensive as it should be. Now a lot of you may think that why does a landlord need insurance? Here, we have made a list of reasons why a landlord should get insurance.
- When a tenant fails to pay rent, who will make up for that rental income? This is where landlords’ insurance comes into play.
- Regular insurance normally does cover damage done to property, but does it cover damage done intentionally by the tenants? No, it does not, and this is the reason why insurance is crucial to have as you can never judge the type of tenants you will and getting, and the damages they will be doing to your property.
- At times, items like the flooring of your house or its windows are not covered by the tenant’s insurance. This leaves landlords at a greater risk for loss.
- Equally, important is to be able to cover the loss of rental income, should the property be not rented out due to malicious damage or intentional damage caused by tenants.
It is always better to be safe than sorry, which is why we recommend all landlords to get the insurance that is best for them.
Sapphire property managers have access to landlord protection cover that can provide, a peace of mind also are tax deductible.