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The benefits of landlords insurance: Protecting your investments

27 Feb 14

For those considering a real estate career, it can be useful to know the various perks you can advise your clients about following a successful purchase of a property. For example, if you're dealing with a lot of investors, it could be worth reading up on landlord insurance and the benefits of having it. 

Landlords insurance is a great thing to have if you're a property investor, especially if you have a large property portfolio. Protecting your investments should be a main concern of yours, even if you aren't actively living in any of the properties or managing them personally. 

It safeguards against unexpected and unforeseeable events that could damage your properties and potentially leave them uninhabitable and unprofitable. 

What things are covered by landlord insurance?

While these packages can vary between insurance providers, most will cover natural disasters. Things like earthquakes, fires, floods, extreme storm weather and other natural acts that can't be avoided or prepared for are usually covered by this type of insurance.

Furthermore, sometimes these plans can cover profits lost due to sudden loss of tenants. If renters abandon your property and stop paying rent, this will allow you to keep covering any expenses or making any repayments associated with the property while you prepare it for the market again. 

Of course, the only way to be completely sure of the specific plan is to get in contact with an insurance provider and discuss the options available with the specific landlord. There are a number of circumstances that can influence these decisions. 

Finally, it could be a good idea to remind tenants to get their own insurance. Your landlord policy doesn't cover any damage to a tenant's goods, so bear responsibility of personal insurance. 

This could be something to keep in mind after successfully purchasing an investment property, when you begin to search for potential tenants. 

REISA's preferred insurance provider is Terri Scheer Insurance.