But I’ve got a Property Manager.. Do I REALLY need it?
It provides protection to landlords and investors from any financial loss that may result from damages to a rental property due to fire, break-in, severe weather, loss of income and much more. Landlord insurance is very similar to other insurances you may have such as home and contents insurance, car insurance and health insurance.So… what does it cover?
Every policy varies and you can control the cover specifics but generically most landlord insurance provide the full Property Damage, both intentional by the tenant or damages cause by fire, storm, theft or vandalism.
Liability insurance, in case of and lawsuits or liability claims against yourself as the landlord. This will help with costs associated with any costs occurred during these legal battles; whether it be medical, legal fees, property damage etc. Loss of income, in relation to if the home became inhabitable or reimbursement for the tenants not paying rent. Just like other insurance’s there is many extra and optional covers – I suggest researching these if they are applicable to your area in which your investment is located.
I’ve got a Property Manager to prevent these issues, do I really need it?
The answer is YES! A property manager, no matter how good they are can only control the behaviors of the tenants so much. Following strict application checks and arrears procedures can still find you resulting in ‘bad’ tenants in your property. Landlord insurance is pivotal to protect you in case of your tenants were to cause harm to your investment or stop paying rent.
Is Landlord Insurance Tax Deductable?
Simple Answer, YES! You can deduct any landlord insurance premiums you pay on your property.
Questions to ask when looking for Landlord Insurance Cover.
1. Will my insurance still cover me if the tenants are not in a fixed term agreement?
2. Will this cover, protect me against tenants not paying rent? If so, what is the maximum claimable?
3. Will this cover me if I was to have a death of a tenant?
4. What are the excesses on this insurance?
*Please note this is a information is from external sources. For professional advice please contact your Accountant, Insurance Company or Property Manager for more information.