Does your Landlord's Insurance protect you?
Many landlords fail to take out a good comprehensive landlord policy, simply because they can’t see the value in what is a $300 tax deductible annual investment.
When you think about it, you wouldn’t dream of not insuring your car or your house, but every year, hundreds of thousands of properties are rented out to people we don’t know. Yes, professional property management is an extra tool in the arsenal against putting the wrong person in the property to start with – those with poor credit and/or a checkered prior tenancy record are not going to be the successful tenants.
But…even good tenants can get themselves into strife. Divorce, loss of job, ill health – there are a myriad of reasons why even the most faithfully prompt tenant may fail to pay that next rent cheque. A good landlord insurance policy protects landlords in the event of loss of rent, accidental or malicious damage by a tenant, court representation by your agent and court fees including bailiff attendance.
In a time where cash flow is more vital than ever, landlord insurance will bridge the gap between where a tenant falls into arrears and finally starts to repay.
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