Having a strong landlord insurance policy is one way to ensure your real estate venture actually makes you money. There are so many concerns when dealing with tenants and lease obligations, and as mentioned by the team at Rent Rescue, dealing with tenants that don’t pay their bills is the most devastating financial problem. As a way to protect from this risk, it is possible for a landlord or property owner to take out a policy of insurance against non-payment of rent.
The cost of landlord insurance is based on several factors. They could include:
- The size and number of rental units
- The geographic location for the unit(s)
- Condition and age of the building
- Condition of plumbing and electrical
- The presence of a swimming pool, playground, or other liability items
- Whether the units allow smoking
- Risk protections such as smoke alarms or sprinklers, gated entrance, or burglar alarms
Carrying landlord insurance is well-worth the expense given what it can be used for. In addition to being able to help with loss of rental income, it protects from the financial loss that could be incurred through natural disasters, injuries, or accidents associated with the rental property. It may even provide enough funds to cover total replacement or complete repair if the entire structure is damaged.