Investigate landlord insurance to protect your investment assets

By the resi financial blog team, 02 December 2013

Landlord insurance

If you're considering taking out an investment loan in the near future, it's important to factor in the various costs associated with being the owner of an investment property. One of the most crucial things to give a thought towards is landlord insurance.

What is landlord insurance?

Just like all assets, sometimes damages can occur and leave them in a state of disarray. Unfortunately, property is no different. However, there are products that can be purchased and put in place as a safeguard.

For investment property owners, you can secure landlord insurance, which can give you peace of mind that no matter what happens, you and your investment property will remain protected from potentially crippling expenses and investment downtime.

How does it work?

Landlord insurance can be taken out to protect you from a wide range of different scenarios. Some of the most common policies include protection from unforeseen events, such as natural disasters.

Fires, floods, earthquakes, stormy weather and other complications can cause damage to properties. However, landlord insurance will provide you with a financial safety net, allowing you to get onto making repairs as soon as possible and get your investment back to tip top condition.

But it isn't just physical damages that are covered. On some insurance plans, you can have the cover extend to missed rent when tenants vacate the premises without providing proper notice.

This will pay you the equivalent of your weekly rent up to a certain amount, allowing you to get the house back on the market and occupied with new tenants.

It's important to be aware that there isn't a single insurance plan that covers everything, so it would be a great idea to get in contact an insurance provider and discuss the various options available to you.

Categories: Personal Finance