Homeowners will be familiar with the insurance policies they take out to cover their buildings and contents. If a property is to be rented out, the owner – now the landlord – will also need such cover. For peace of mind, they should look into landlord insurance, especially as standard home and buildings policies do not generally cover tenants.
What does landlord insurance cover?
Generally, financial protection against both general and tenant-specific damage to the property is covered, with options such as covering unpaid rent also available.
Is it expensive?
Policy costs depend on many factors, including the type of tenant you have in place; for example, students are considered higher risk than professionals. Landlord insurance is generally cheaper than being left responsible for all costs should the worst happen.
Renting out a furnished property
A flat or house that comes fully or partly furnished with essentials such as white goods and basic furniture is always attractive in the property rental market. In general, the rents on properties are higher when they are furnished to reflect the cost of providing and maintaining these items.
Deposits and damages
It is standard practice to charge tenants a deposit of some kind before they move into a property. This will then be returned at the end of the tenancy, assuming there is no damage beyond fair wear and tear to the structure or contents of the property.
The issue of deposits and damage is a major reason for tenant-landlord disputes, so it is important that the condition of each item provided is noted and agreed by both parties. Using property inventory software makes this process fast and easy and provides a permanent record of all contents present when the tenancy started. When it ends, Property Inventory Software can automatically compare the two and alert the user to any differences that need attention.
Is it worth it?
As with any insurance, you hope there will never be the need to use it. In general, landlord insurance is always worth it. Nobody wants to imagine a tenant trashing a property or refusing to pay rent but legally being able to stay in the property for months; however, these things happen all too often. Cutting corners may save some cash in the short term, but the risks of huge financial losses won’t be going anywhere.
