Very few of us would ever consider travelling overseas without some form of travel insurance. It doesn’t even matter which country we plan on visiting, we all know there is an element of risk involved just in travelling overseas – whether its lost luggage, our flights or hotel booking being cancelled or worse still getting really sick. So we automatically arrange insurance cover for the trip – ‘just in case’!
Most of us also have insurance on our home, our car, boat or anything else that we may own that is of value to us. A good percentage of us also have life insurance – again ‘just in case’.
We all understand that it’s important that we do take out insurance so we can protect ourselves from the unexpected and avoid loss or financial hardship.
So I am always a little puzzled as to why some investment property owners consider that taking out landlord protection insurance isn’t really necessary?
These days, any property is a big investment and as such, it’s simply a good idea to do all we can to reduce the element of risk involved. The world is quite a different place now to what it was say 20 years ago. Tenants are much more ‘street smart’ and more educated on their perceived rights and responsibilities. Subsequently landlords need to be switched on too, to ensure they are not putting themselves at risk.
There are lot of reasons in favour of landlords protection insurance, including that it offers a lot more protection than just traditional home insurance, which really only protects the property itself against damage.
Landlords insurance covers a lot more, including when tenants fail to pay the rent, damage the property and so much more.
While some of you may have heard some stories about bad tenants, I can reassure you that statistically, problem tenants only make up about 1.5 – 2% of the renting community. But it’s that 2% who can cause property owners, as well as property managers, a lot of problems. And that’s why landlord insurance is so important.
At Investors Direct we are scrupulous at vetting prospective tenants and use every possible check available to us. But even the best possible tenant can lose their job or have a breakdown in their relationship which can change their circumstances and lifestyle. Good people can behave badly when put under certain pressures.
Landlord protection insurance can help eliminate some of the potential problems that can arise. Like travel insurance, it’s a ‘just in case’ policy that’s worth having.
If you would like to know more about the details of what landlord protection policies offer you, please feel free to give me a call or email me at email@example.com