If you've bought some properties and intend to develop them so you can enter the rental market, you'll want to be as prepared as possible. Certainly, you need to take into account the property condition, furnishing, safety, and other legal requirements, but you also want to protect yourself from a financial point of view. In this case, you need to look at specific insurance properties tailored to the landlord market. What kind of protection can these policies give you?
Sizing up the Options
There are many different types of landlord insurance policies in the marketplace, offered by a variety of providers. They don't all offer the same levels of protection; some may have standard inclusions, while in others, the same risk may be left up to your choice. You should look at each option and ask an adviser for help so you get as much protection as possible in your specific circumstances.
Building and Contents
Start off by looking at building and content coverage. These types of protection may be offered as standard features in other products, but they are crucial to help you in the event of a catastrophe. Of course, they won't take into account wear and tear, but if your tenant triggered some kind of water leak and it ruined all your furniture, you would be able to claim.
Refusal to Pay
Many policies will help you out if the tenant defaults on their rent, refuses to pay, and then remains in place. The level of financial protection or the number of calendar weeks may vary by provider, and you need to look closely at the small print.
You may also want to consider legal liability. This will protect you if somebody is hurt on your property. It may also extend coverage if a third party was harmed as a result of actions by your tenant. Each provider may have different interpretations of what legal or public liability may cover.
Burglary and Theft
Next, consider whether you need cover for burglary or theft committed by the tenants or any people they invite into the property. You can also get specific pet damage insurance.
Figuring out the Excess
Once you have thought about all the risk areas, pay attention to the excess. In most situations, you may need to pay a certain amount out of pocket, and the excess can vary according to the individual area of protection.
Tailored to the Industry
Finally, note that some insurance policies cater to short-term holiday letting while others are designed for corporate leasing companies. You need to ensure that you get products that are tailored to your specific goals.
Getting It Right
Landlord insurance can be quite complex, but you'll always want to get this right. Certainly, there is good money to be made from rentals in the current market, but you won't want to throw all of that effort away due to an unexpected lawsuit.
For more information, contact a local business insurance broker.