Are you looking to rent out your first property? Do you already own a property but have yet to commit to a landlord insurance policy? It’s time to get one. Navigating the waters of property rentals can be a tricky business, but it doesn’t have to be a fiscally dangerous one if you take the time to protect yourself with the proper insurance policies. As a landlord, purchasing a landlord insurance policy is essential, but there are a lot of misconceptions surrounding just what those policies do. These are the four most common myths we here are the industry regarding landlord insurance.
My Property Is Covered If My Tenants Take A Vacation
As with any insurance policy, it’s dangerous to assume anything. Much like homeowners insurance, many landlord insurance policies impose restrictions on just how long a property can stay vacant while still remaining covered. This is why it’s important to make sure your tenants notify you in advance about any extended vacations that they plan on taking. That way you’ll always know whether your landlord policy covers it, or if you need to consider extended coverage.
I’m Renting To Family Members, I’m Not Worried About The Paperwork
You should be! Regardless of whether you have a written contract, or a verbal one, your property is still going to be classified as being let, and you will need the appropriate buy-to-let property coverage extensions in order to be fully protected. Remember, it’s not just the random chance of fire or flood that you are protecting yourself from. You also will be liable if one of your family members injures themselves while on your property! Take the time to do your research, and cover all of your bases.
Buy To Let Insurance Covers Me If Tenants Damage My Property
This is not necessarily true. Not all buy to let policies cover everything you need them too. For example, many of those policies do not extend to cover malicious damage by tenants. If a tenant decided to wreck your property, and caused damage in excess of their rental deposit, you could be left footing the bill if you don’t have the proper landlord insurance policy. Always read the fine print!
Landlord Insurance Will Cover Me For Loss Of Rent No Matter What
While most landlord insurance policies do include language to protect landlords from loss of rent, it is dangerous to assume that your policy will do so in every scenario. In general, most policies will cover loss of rent in the following situations:
- Tenant(s) eviction
- Tenant(s) defaulting on payment
- Tenant(s) obtain a hardship order
- Unsafe living situation following an insured event
- Death of tenant(s)
If you think you may face a situation that is not listed above, consult your policy carefully before purchasing! You want to make sure your purchase the insurance policy that is right for your needs.
There is never a guarantee that your property will remain safe and undamaged when you rent it out. However, you can ensure that you are fiscally protected should such an event occur, by purchasing the appropriate landlord insurance policy. If you are in the market for a landlord insurance policy, consult with an insurance professional! The people at TGS Insurance are always ready to help. Visit www.tgsinsurance.com for more information.