Having a comprehensive Homeowner Insurance Policy can save you from financial ruin
Last year one in three landlords had tenants in arrears. If you are still paying the mortgage on a property, then missing rent payments can disrupt your lifestyle in a very big way. Imagine that combined with repair costs due to a fire or flood. Then on top of that you had to re-furnish the property all out of your own pocket.
It wouldn’t take long before you were filing for bankruptcy so protecting your investment needs to be top of your priorities. With the right level of cover in place, you will never have to worry about the worst case scenario.
There are a number of landlord insurance policies available, however obtaining the right one for you can become quite complex. Because of this it is essential that you do your own research and pick a policy that is best suited to you and your investment. The key things to include are:
• Building and/or Contents Insurance – Not only will this protect your investment in the event of total loss (fire, flood etc) but it will also protect your belongings in the property, ideal for furnished or part-furnished properties.
• Legal Expenses – This will cover you in the event that you have to take your tenant to court, should incidents such as tenant default, refusal to leave or debt recovery arise.
• Rental Protection – This guarantees that the rent will still be paid to you should the tenant default, refuse to pay or even when your property is empty between tenancies.
Landlord/Tennant relationship breakdowns are well documented in forums across the internet, you may have some horror stories of your own. So with the right landlord insurance policy at your side, you will never need to worry about any of those horror stories affecting you or your investment.
