Tuesday, June 21, 2016

3 Major Concerns For Landlords

By owning an investment property you get to enjoy a stable flow of income, which can make it a very profitable business for landlords. However, like any other business, there are also risks involved in investment property business and many landlords and homeowners are unaware of these risks. Here are 3 major risks which every landlord should know about when starting their business.

Missing Out On Rental Income

When you are renting out your home for tenants there is always a risk of loss of rental income. Some tenants might deliberately not pay rent while others may fail due to some difficulties. No matter what trouble landlord faces when a tenant defaults on rent. This can create a major financial burden to the homeowner when there is a mortgage on the house. On the other hand, the house may be uninhabitable for some time due to damage or renovation during which landlords will not get any rent.

To overcome such problems you can get the best value landlord insurance for your home which protects you from the loss of rental income. Before going for the insurance always do a market survey and try to get the best landlord insurance quote from your agent.

Background Of The Tenant

All landlords want good tenants that pay their rent regularly and do not damage the property. However, not all landlords are so lucky. Some tenants might not pay their rent or they can break your furniture or any other building structure or they can create some nuisance which can disturb the neighbours. As a landlord, you should always protect yourself from such problems by having a background check of the potential tenants. Although checking the profile of the tenant might be difficult but it will give you great benefits in the long run.

Economic Uncertainty

landlords insurance, landlord home insurance

For any business, the situation of the economy plays a big role and the business of investment property is no exception to that. When an economy goes through recession everyone is affected. If your tenant loses his job then he will not be able to pay rent which will reduce your income. Similarly, if you have rented your building to a business, the chances are they will also be affected by the recession and they might go out of business which will affect your rental income.

Monday, June 13, 2016

4 Popular Landlord Insurance Myths Busted

When it comes to protection of your home insurance plays a very important role and while many landlords suffer from problems due to their tenants, landlord insurance becomes a necessity when it comes to protecting the house as well as the landowner. However, there are some misconceptions and myths regarding landlord insurance which makes it very confusing for the common people. So here are 4 myths about landlord insurance which many homeowners are not aware of.

Myth 1: My Home Insurance Will Cover My Rental Insurance

Although some of the liability might be covered by your homeowner’s insurance it’s a very risky situation for a landowner. For example, if the tenant damages your apartment then your normal home insurance will not cover those damages. On the other hand, If the rental is for a few weeks, then you might get away with a standard home insurance policy, but if it’s for a long-term, then you need to notify your insurance agent of the change in property usage and will require a landlord insurance.

Myth 2: As I Am Renting To Family So No Insurance Is Required

It’s always better to let someone known to stay in your house rather than some stranger. As renting to family members has its advantages but sometimes it can also lead to some complications. For instance, your insurance policy might cover your property from fire, flood or theft but what if your family member gets injured in your house due to your negligence. He or she might file a claim against you for not maintaining a safe environment for tenants which can mean real trouble for you. Having a separate landlord insurance protects you from such claims.

Myth 3: I Don’t Need To Notify My Agent When My House Is Unoccupied

Some landlords believe that since an unoccupied rented house is a common issue, they don’t need to notify the insurance company but the general rule is to notify your insurer whenever the house is vacant. Your agent will take into account the time you need to search for new tenants and will only cover for a specific period. Usually, 60 to 90 days is a general limit set by most landlord insurance companies and if you need more time than that, then you need to discuss your options with the agent.

Myth 4: The Insurance Will Cover Everything In My Property

Landlord Insurance, Home Insurance, Landlord Protection Insurance

Although a typical insurance covers your building from damage, you also need to protect your belongings. Which is why you need to add the contents insurance clause in your landlord's insurance. The contents insurance helps to protect your expensive possessions from damage or theft by tenants. This clause is especially necessary when you are renting out a fully furnished apartment.

Monday, June 6, 2016

Tips For Getting The Best Landlord Insurance Quote

Landlord Insurance

If you are a landlord of a beautiful house, apartment building or a condo, then you need to protect it from damages and defaulting tenants as well as other problems with the help of a landlord insurance. In such situations, its’s necessary to find the best landlord insurance company which is not only reliable but also provides reasonable insurance rates. So here are some tips which will help you to get the best landlord insurance quote.

1. Know Your Current Rental Property Values

Insurance Quote

The first thing to check while going for a landlord insurance is to know the current value of your house or building which you are renting out to tenants. If your investment property has a high rental value, then the chances are you’ll need a high rate of insurance policy. Similarly, if your rental value is low, then your insurance quote will also below.

2. Give a Copy of Your Tenancy Agreement to Your Agent

Tenancy Agreement

By giving a copy of your tenancy agreement, the agent will get to know all the responsibilities as well as the duties of the tenant. By going through the duties and responsibilities, the agent can make an estimate of the risks faced by the landlord from the tenant. Thus, the agent will quote accordingly.

3. List All Additional Structure

Additional Structure

If you have an additional structure like swimming pool, garages or storage buildings, then list them as well while filling up your landlord insurance form. When the agent will get to know all the structures on your property, only then can he select the specific landlord insurance quote which is suited for you. If you do not list all the additional properties, then only your building will be insured which can create huge problems for landlords if your garage gets damaged during a flood or fire. So it’s always better to let the insurance company know the exact contents of your property.

4. List Any Equipment That Can Cause Injuries

Listing Equipment

When you are going for the best value landlord insurance always mention if you have a gym, basketball court or a swimming pool through which your tenants can get hurt or injured, because if your tenant gets injured, he or she might blame the landlord for the injuries. In a scenario like this, landlords can go for public liability insurance coverage in the landlord insurance package. For such packages, insurance quotes will be a bit high.

5. Mention All The Safety Features

Safety Features

While applying for insurance for your rented property, make sure you mention all the safety features such as fire sprinklers, burglar alarms, motion sensors you have on your property. Since these safety features make your property safer, so the insurance company can go for low insurance quotes. Similarly, if the safety features are not there, then your house is riskier and you will have to pay higher insurance premiums.

Now that you know the do’s and don’t’s of landlord insurance, contact your nearest insurance agent and get a quick landlord property insurance quote for your property.