First Time Landlord and Insurance
The demand for rental homes continues to be strong, although being a landlord isn't for everybody, it can be an effective way to grow your wealth. It should not, however be mistaken for a way to get rich quick. Being a landlord is a long-term investment that needs to be approached carefully.
Landlords have a lot to deal with when it comes to maintenance responsibilities, safety, advertising and managing tenants (good and bad). Not only do you need legal documentation, licences etc, you also need to carefully consider Landlord insurance.
Why do you need Landlord Insurance?
Unfortunately, there is the possibility of things going wrong when letting a property. Worst case scenario you could suddenly find yourself with a bill for major repair or maintenance work, or if you are unlucky enough to have problem-tenants that don't pay the rent.
This is where landlord insurance can cover you and your property. Our mindset is that we don't want to think about any sort of future uncertainties. But, no matter how much we ignore it, some kind of crisis is bound to happen.
Landlord insurance policy can cover:
- Non-payment of rent
- Damage caused by tenants
- Liability for accidents on the property
- Loss of earnings
What Insurance Do You Need?
Landlords generally have landlord insurance policies, however, many also cover themselves with an umbrella insurance policy to have extra liability coverage. This is to protect their assets from significant claims and lawsuits.
If you are thinking of buying a rental property, it’s important to include all of these costs in your calculations. And it is always good to know the “worst-case scenario” too.
Insurance companies like HomeLet offer policies designed to help to take the risks out of property rental, with specialist products to protect letting agents, tenants and landlords.