Monday, February 7, 2011

Why Landlord Insurance Is a Good Idea

If you’re thinking about becoming a property manager, you should definitely look into landlord insurance policies. Landlord insurance is an important way to protect your investments and gives you peace of mind when taking on such an endeavor.
The two biggest benefits such a policy offers are:

  • Coverage in the event that the property is damaged or otherwise uninhabitable, thereby mitigating your losses in rental income.
  • Coverage of legal fees in the event a tenant sues you for injuries sustained or other problems related to the property you own.
A few things to you’ll need to consider when deciding on the right policy:

  1. What kind of property is it? There are different insurance requirements for different types of property.
  1. Where can you get the best rates? Research, research, research to find the best rates on the type of insurance you need. Check with any financial institutions and insurance companies with which you’re already affiliated, to see what they offer. Also check with other landlords in your area as well as any local property management associations. Compare premiums and services, and don’t be afraid to bargain to get the best bang for your buck.
  1. What types of things do you want coverage on? The amount of insurance you need will depend at least in part on the kind of property it is, where it’s located, and how well maintained it is. Most landlord policies will protect you against theft, fire, vandalism and damage from weather events.
Did you know previous eviction notices don’t show up on credit reports? Don’t be duped into thinking a credit check is all you need to be assured you don’t have a problem tenant. Get a professional tenant screening!

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