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Reasons To Get Landlords Insurance To Get Covered For Unexpected Or Unfortunate Events
If you have a property that you rent to tenants, then you surely need to take one of the comprehensive landlords insurance plans. Without them, you could end up paying a load of money on repairs or reconstruction, end up in court, or be unable to make mortgage payments on time due to the loss of rent.
Insure the building
One of the most important things you need to get coverage for is for building damage. What if a major earthquake or a storm damages the building? Where are you going to get the money to repair it? Having the building damaged or completely destroyed could be a nightmare, but imagine having nothing left and no way to pay for the reconstruction or repairs.
With landlords insurance, you can insure the building and get coverage for any of the events that could affect it. You can get coverage for fire, storm or flood damage and get the peace of mind that you won’t have to pay for repairs from your own pocket. There might be some things that the insurance policy might not cover, so you might want to consult with your insurance agent to see what they are. Chances are that the building can’t be covered for vermin or insect infestation so you should better make sure that you prevent any pest infestation before it occurs.
Another important thing to note is that the sum you get covered for with the landlords insurance is also very important. This should reflect the price it would take to repair or rebuild the building, so if you don’t want to risk ending up shorthanded, you should hire a specialist beforehand to evaluate this sum.
Landlord liabilities coverage
You never know when your tenant accidentally slips on a slab in the bathroom or trips over some electrical wires. In the case of injury, you could get sued in no time and the consequences could be dire. Rather than risking ending up in court and paying for hefty damage claims, you could get landlords insurance to cover for landlord liabilities. Even in the event that you still end up in court, you should know that most policies provide insurance of up to 2 million pounds. With this type of insurance you also get covered in case a property next to yours gets damage while you perform repairs. Not only that, but if an employee gets injured due to electrocution, fall or due to any other factor on your premises, you also get landlord liability coverage.
Cover for malicious damage
While most tenants don’t want to cause any trouble, some might be revengeful or simply malevolent. What would happen if one tenant decided to break windows, smash furniture or cause any other damage to your building or fittings? Rather than risking to pay for the repairs from your own pocket, you could get landlords insurance and make sure that these will be covered be the policy. Glass, key and lock and key replacements are also quite common when it comes to this coverage, so you can rest assured that no ill-intended tenant is going to cause you financial loss.
Loss of rent coverage
While you do get coverage for a wide range of problems and damages, you have no guarantee that you will get the rent you are owed each month. That is why the loss of rent feature is an integral part of the landlords insurance. With it, you get covered in case the tenant stops paying rent for whatever reason. While, in some cases, losing the rent might not seem so bad, if it is your lifeline or if you need it to pay the mortgage for the building, then things can get nasty. Rather than being faced with the impossibility to make mortgage payments on time, you could make sure that even if you temporarily lose the rent you will still get the money you need to pay the bank.
Another condition where this insurance option applies is if, due to fire, flood or any other event, the space becomes uninhabitable. That would also result in the loss of rent that would yet again put you in a world of trouble. Lucky for you, the landlords insurance also covers the loss of rent due to the living space becoming uninhabitable.
Home emergency coverage
One of the last things you want is to have to deal with unexpected damages and emergencies when you don’t have a penny. What happens if a pipe breaks down or there’s a flood in the property? While you might think that the chance of a home emergency occurring is quite low, in reality it is just the opposite. Emergencies of this kind happen all the time, and things can get real ugly especially when electricity is involved. Not only is the tenant left without any electricity, but electrical damage left unattended can turn into something much worse and it can lead to fires and cause irreparable damage to your appliances .With landlords insurance, you get the insurance company to pay for the damage as well. You can get a team of professionals working on fixing things at any hour of day and night, and the best part is that you won’t have to spend anything if you get a comprehensive landlords insurance plan.
So don’t let yourself at the mercy of nature or malevolence of tenants – make sure you are covered no matter what. Check a few prices and see which of the insurance plans best suit your needs. Just as mentioned above, make sure that the insured sum reflects the value of your property and the fittings or that it can help you rebuild the building in case it is destroyed by a fire, hurricane or another disaster.
Use Parafic.co.uk to compare landlords insurance offers and choose the one that best suits your needs, in order to put your mind at ease, knowing that you will get full coverage for a wide range of unfortunate events.