There your property manager goes again about the importance of landlord insurance! It is a question many investors have asked themselves. Let's have a look at four reasons why landlord insurance is important.
1. Tenants circumstances change
You may complete all the checks, the tenant may have savings in the bank, strong employment and show all the makings of the perfect tenant however this is still not a safe bet. The tenant could fall into financial hardship and be unable to pay their rent at any time. Your landlord insurance will cover much of the losses in this circumstance.
2. Accidental Events
I am sure many landlords have had that 4:50pm Friday phone call from their property management team. You know the one where a tree has fallen on the roof or there has been a fire or flood in the living room! Well guess what, your landlord insurance has you covered here. You can rest easy knowing that you won't have to fork out extra funds unexpectedly.
More and more tenants are pet owners these days and as much as we love our furry friends they can sometimes cause damage to flooring, skirting and gardens. Luckily many insurance companies are increasing benefits for pet damages.
Overall all for as little as $280 a year, its worth purchasing landlord insurance.