The idea of investing in rental properties and creating a steady revenue stream sounds great, but have you given any thought to the type of protection you need to secure? Before the first tenant lease is signed, you need to have landlord insurance in place. Along with providing peace of mind, having an insurance plan in effect will make it easier to get back on your feet if something does happen. Here are some of the more important provisions that must be part of your coverage.
Fires can break out for all sorts of reasons. It could be due to a faulty appliance owned by a tenant, but it could also have to do with one of the major appliances you placed in the rental unit. There could also be an issue with the wiring or a problem with the gas lines. Having fire protection as part of your Youi Landlord Insurance ensures that you have the resources to repair the damage and continue to offer the units to prospective tenants.
What would happen if one or more pipes burst after a freeze? Would you be able to handle the water damage to the building? Having this type of protection will mean that whether the water damage is due to severe weather or a plumbing issue, the resources to correct the issue will be on hand.
Protection From Acts of Nature
While you hope to never have to deal with the aftermath of a tornado or an earthquake, knowing your landlord insurance includes provisions that help you repair the structure makes recovering easier. Check the provisions carefully since some insurance providers will also include damage from riots in this particular clause.
Loss of Income Protection
While many types of repairs are in progress, you are not able to generate income from one or more units on the property. Did you know that some forms of landlord insurance include what is known as loss of income or fair rental income protection? Essentially, you can file a claim and receive an amount that covers all or at least part of the revenue you lose while the repairs are underway.
Don’t consider landlord insurance coverage to be something to put off until later. Even if you purchase the property outright and don’t have to finance the venture, having the insurance in place is still in your best interests. Talk with an agent today and go over every element of the plan. All it takes is one covered event to make the insurance worth every penny.