Do you hold a residential property owners insurance policy for a new investment property? Whether you handle a single standalone home or a multi-storied apartment complex, renting out a property is going to be a risk-filled activity. From deadbeat tenants who refuse to pay rent, careless renters causing damage to water fixtures or fittings, or burglars after your cables and copper piping in a recently vacated space, nerve-wracking perils will continue to haunt landlords even while you sleep. Add to that damages and losses due to unforeseen calamities. Nevertheless, it is common knowledge that having an insurance policy is a must-have, but why the need to have one?
Perks of Residential Property Owners Insurance
One of the top goals of insuring a residential property is to keep your financial aspect intact even when suffering any losses. Insurance is more or less an investment wherein you agree to allot a small fee for premium payment in exchange for a “guarantee” from an insurer to bear the burden of uncertain loss or damages in the future. It is a “safety net” for you, as a property owner, to lean on when something unforeseen happen to the structure, its contents, and if you may, to your rental income and legal needs when something arise.
Some property owners and landlords tend to get complacent when their properties are listed as low-risk. Some of them may have not experienced any worrisome issues in their own homes and believe the same of their investment property. But often, these people learn too late. By the time a super storm wrecked a property causing total damage or when a tenant decided to ditch your rented apartment without paying rent, it is already too late. Residential property owners insurance, in a nutshell, gives you a way out in dire situations without spending a single cent out of your pocket.
The Right Coverage
It leaves no room to doubt the significance of insuring one’s investment property. But while all insurances are important, they are not designed in a generic manner. There are various aspects to consider when thinking of property insurance coverage. From risks involved to geographic location, hazards, age of the building, zoning policies, and the likes, a landlord or property owner must also think about liability cover, rental income, and other coverage to address a perceived concern.
Standard residential property owner’s insurance policies cover sudden and accidental losses or damages caused by fire, tornado or hurricane, theft and liability. It is important to note that the “sudden and accidental” clause must be met. Roof or walls caving in due to dilapidation will not be likely covered as opposed to one that’s ravaged by a typhoon. In the same light, other perils like flood damage, earthquake, acts or terrorism or war, and mould and infestation are not covered unless specified—and often with added premium cost.
All in all, property owners must always have an insurance policy handy to provide them a protective umbrella during a torrential downpour. Problems can occur out of the blue and often, they caught landlords off-guard. With a sound residential property owners insurance specifically designed to cover your unique requirements, you can finally rest soundly at night knowing that your property and your own welfare is protected.
Need help on what residential property owners insurance to get? Schedule a consultation with Landlord Insurance HQ by calling us at 1300 815 344. You may also request a quote online from our website. We are here to tailor-fit an insurance portfolio to satisfy your requirements.