Why Landlords Should Not Try To Save Money On Property Insurance!
Being a landlord can be an extremely profitable business but without the right planning it can also become very costly.
As a landlord everything is fine financially whilst you have tenants in a property but if you have to endure a period with a vacant property, the lost rent can stack up extremely quickly. Another pitfall of being a landlord is having tenants who won’t look after a property as they should do or who will cause damage to a property whilst in there.
Add to this the risk of accidental damage too and being a landlord can quickly become less of an attractive prospect.
Landlord property insurance covers damage caused by any sort of weathering such as wind and hail but it also and more importantly covers the property in case of a fire.
A landlord who decides to take a risk and not take out landlord insurance to save a bit of money will find that if a fire does occur in the property or E.G. a random car going through a house in kings Langley NSW , they will not only be left with a part or fully damaged property but they will also have large repair bills and a lack of income through having no tenants in the property.
If damage does occur to a property and the property is unable to house people until it is repaired then usually the insurance would cover loss of rent during that period. Through not bothering with landlord insurance the loss a landlord could face would be far greater than the small saving they made by not taking out insurance.
Fully Furnished Properties
A lot of landlords also rent their properties out with either part or full furnishings. This again can present problems for a landlord if they decide not to bother with landlord insurance. Any damage done to the furnishings or the appliances will not be covered and the landlord will have to pay out for replacements themselves.
Property Liability Insurance
One of the most important reasons a landlord should have property insurance is for liability purposes. Should a tenant have an accident due to a fault with the property, landlord insurance can cover most compensation claims they make. Without insurance the landlord will have to pay out for the claim themselves and possibly face criminal charges too.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.