Many landlords think that dealing with unruly tenants is just a necessary part of the rental property business. It doesn’t have to be this way, though. Landlords can protect their investments and income with the aid of insurance products.
Finding good tenants who will maintain the property and pay their rent on time can be challenging, no matter how cautious and meticulous you are as a landlord or property rental agent. You can get peace of mind and save money by getting landlord insurance, which will come in handy if you ever need to evict a tenant.
What is landlord insurance and what does it cover?
A type of insurance policy known as landlord insurance is geared toward landlords who rent out a home either on their own or through a rental agent in order to make money. Most unfortunate events that might have an impact on your income as a landlord are typically covered by these policies. These may consist of:
- The tenant who purposefully harms your property
- Rent not being paid by the tenant
- Any earnings lost as a result of any damage brought on by the tenant
- Structure damage that causes water damage
The aforementioned elements should be taken into account if you’re shopping for building insurance so that your policy will provide the coverage you require.
Why do you need landlord insurance?
Since the start of the pandemic, which lead to businesses closing and a loss of income for many people, an increased number of tenants were unable to meet their obligations in terms of paying their monthly rental amount. This means that landlords are out of pocket and in some cases needed to move forward with an eviction process. This process can be lengthy and costly so it is advisable to take out a landlord insurance policy even just to cover the cost of rent when a tenant fails to pay.
How do landlord insurance policies differ?
Insurance companies offer different policies with their own terms and conditions relating to the premium payable, claim limit, insurance limit, and other specifications. Some insurers won’t provide cover unless they vet the tenant as well. They will look at the tenant’s credit record, and bank statements and even speak to their employer before making a decision.
Will my insurance cover the cost of an eviction?
The good news is that most policies do cover the costs incurred when evicting a tenant. The legal costs of the eviction can be quite high. Because a landlord is typically already deeply in debt when they decide to evict a tenant, this information can be extremely helpful.
Protect yourself and your investment
While getting landlord insurance is a good idea, the best way to protect yourself and your investment are by hiring a property rental agent. The property rental agent will advertise your property and vet the potential tenant on your behalf. They do necessary credit checks, blacklisting checks, bank statement analysis, and follow-up on references to make sure the tenant is the best fit for your property.
Fitzanne Estates offers letting services over the whole of Gauteng and will find the perfect tenant for your rental property. Should you want to let a house or flat, Fitzanne Estates as a letting agent, can offer an all-inclusive package of services for your convenience of mind.
More about Fitzanne Estates
Fitzanne Estates (Pty) Ltd is a Property Management Company that can sufficiently administer your property investment to the benefit of the Landlord, the Body Corporate, and the NPC – Non-Profit Company. Services include Letting, Sectional Title Management, Full Title Management (NPC – Non-Profit Company) and Sales.
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