If there is one thing an investment property owner doesn't want to happen, it is to lose money on an investment. The intention of an investment property is always to increase income and wealth; however, sometimes things can go wrong and what starts out to be a dream of building a strong financial future becomes a nightmare that costs money.
A rental property can become an endless money pit for various reasons, such as repairs that were not foreseen or even damage to your property. Even worse can be bad tenants in the absence of reliable and succinct rental property managers to ensure all the workings of your investment are running smoothly.
Even if your property management is the best and the tenants are great, accidents can still occur either to your property or to people who are on your property. For the times when things do go wrong with incidents, accidents and more, the wise investment property owners makes sure they are covered by landlord insurance.
Why landlord insurance?
An investment property is a huge asset and one to be taken care of and protected. It is a business and should be treated as such. Landlord insurance will give astute property owners a sense of ease knowing that if something occurs or goes wrong, their hand won’t necessarily be reaching into their pockets. Depending on your insurer, the terms and conditions may vary. However, when expert property managers are selected, they should be able to put you in touch with a reliable insurer who can offer you the best asset protection.
Until then, set you mind to thinking that no investment property owner should be without landlord insurance. As the owner, whatever happens on the premises of your property could end up being seen to be your responsibility. This is particularly true if there is a carpet repair that should have been carried out on a stairway and the tenant trips and falls. Here you will probably be held legally liable, yet with the right cover you won’t end up having to pay for medical expenses, amongst others.
Don’t assume that if you are related to, or know the tenant, that these rules do not apply. It is a common tale that friends and relatives have become enemies when business transactions have gone wrong. If you are unsure of what landlord insurance covers, then you should get in touch with your property manager today to ensure that you receive sound advice and that you are pointed in the right direction.
If you would like more information on getting the best property management and the most thoroughly screened tenants for your investment, click here.