If you own one or more rental properties, it’s important to know that they’re covered by an insurance policy. Regular home insurances may not be as comprehensive as you think, and many home insurance policies don’t cover damage by tenants and guests in the house. Landlord insurance is the best way to ensure that you, your property and its tenants are kept safe.
At McPherson Property Management, we thoroughly advise that the properties in our care have the most suitable cover available. Insurance can seem foreign and somewhat frightening, so we’ve got everything you need to know about landlord insurance, and why it’s the best way to cover your property, and everyone and everything inside it.
Much like every insurance policy (car, household and contents etc.), each landlord insurance policy is different, depending on who your policy is with. It’s important that you do your own research to decide the best company, the amount and scope of cover, and the cost to you. Your property manager will be knowledgeable in insurance matters and will be able to provide guidance. When considering landlord insurance, you’ll need to know the value of the house and property, and the value of your own contents inside before you make contact with your provider (insurance company).
Like home insurance, your property and your own contents inside that property can be covered. However, unlike home insurance, many landlord policies have cover or cover options for loss of rent whether by eviction or a tenant vacating unexpectedly, damage to the property, and damage by tenants (intentional or not).
Tenants are encouraged to have their own contents insurance policies, because most landlord policies will not cover tenant’s contents. A tenant’s insurance may also cover their liability; for example, if they accidentally damage the property. As landlords, we encourage tenants on the importance and need for contents insurance.
Liability is usually also included in a policy. This means you’re covered for any accidental damage to someone else or their property (a third party) in relation to your property. For example, if a fire spreads to a neighbour’s house or if a tree you’re cutting down accidentally falls onto a car or neighbouring garage.
Many insurance companies require a number of things to be done to make sure the policy remains valid. Many of these, like requiring written references from tenants, doing regular inspections and monitoring rent payments are what your McPherson’s property manager already does. They’ll keep in touch with you (and your insurer if you so choose) to keep things running smoothly, as well as doing all they can to prevent a claim in the first place!
As the saying goes, it’s better to be safe than sorry. We’re happy to help with any questions you have regarding insurance, and with choosing the right cover for you.