In an ideal world investments would always be safe and people would always do the right thing, but this dream does not exist in the real world which is why as a landlord you need to take several steps to protect your investment portfolio before you start renting properties. Even the most innocent and friendly applicant can end up being a destructive or accident prone tenant, therefore, you need to make sure that your properties are protected at all times so that you do not end up taking a loss on your investment.
You will not have to worry about hassle from tenants or damage to your properties that could be too costly to repair adequately however if you have the proper Landlords Insurance cover in place. There are many different aspects of landlords insurance, but the bottom line is that this type of insurance is designed to help protect your financial interests in your property and to help you recoup any losses should they occur. The level of cover that you need will be dependent on the amount of properties you plan to rent and your individual insurance needs, but you should take a minute to read over the available options.
The most basic landlord’s insurance policy will cover the actual buildings which is very important if you still have a mortgage on the buildings that you are letting. This way you will not get stuck with the bill should something like a fire or a natural disaster occur that threatens the building’s structure and requires extensive repair. Along the same lines, you may also want to consider taking out landlord contents insurance to protect any furnishings that you may have purchased inside of the building since these are an investment into the property as well.
It should be noted however that most landlord contents insurance will not cover any intentional damage that was caused by a tenant out of spite. Therefore, you will need to look further into buildings insurance for this type of coverage. Bear in mind once again that even the most polite tenant can turn nasty once they are inside of your rental unit, so it is worth keeping a policy just in case as there is no way of predicting what may happen. Finally, you may also want to consider getting rent protection insurance in the case that you have a tenant that defaults on their monthly rent.