Many people toy with the idea of buying an investment property. If the property is wisely chosen it can become a very valuable asset. With proper management and good tenants the property has the potential to earn you a steady income, with minimal fuss after the initial setup. Of course becoming a successful landlord means being aware of the pitfalls and having doing some research, and of course protecting your investment and the income it provides. One of the easiest ways to do this is through Landlord Insurance. So what is it and why is it necessary?
Brisbane Property Managers can assist you to sort through the pros and cons of insurances. But the majority will encourage you to have landlord insurance. This insurance is designed to protect investors in a number of situations that are unique to the investment home owner. Although most people have positive experiences, there are things that can go wrong and without insurance, can cost the landlord lots of dollars. Landlord insurance can cover loss of income due to absconding tenants, malicious damage to the property, rent loss due to the property becoming uninhabitable from storm or other damage, and can even cover legal costs in the event of debt recovery or damages or other legal action.
When choosing the right insurance, you may have a preferred insurer. If not it can help to talk to a property management Brisbane agent. They will be able to help you by referring you to some companies they, or other clients, deal through. Some insurance companies will even cover you for tax audits, give building insurance and cover you for short term stays in the event that you invest in a holiday home, which you let out for shorter periods to a variety of holiday makers. It is also important to make sure you are covered for legal liability in the event of injury or death of a tenant, or visitor to the property. Costs of this nature can be very damaging.
As with any insurance, you may never need it, but not having it could cost you lots in the event that your property gets wilfully damaged, tenants disappear or even in the event a sole tenancy client passes away. When you consider the considerable money you have invested in your rental property, it makes very sound sense to insure it to insure it for any unforseen occurrences. Once you know you are adequately covered and prepared for any scenario, you can sit back and enjoy all the benefits being a landlord can bring!