Renting out a property has proven to be one of the most profitable investments in the last decade. The risks associated with poorly behaved or unconcerned tenants make rental properties an investment that is fraught with risk and this is complicated by the lack of risk cover available on the market. Landlords insurance that does the job and protects investors from the risks posed by propery investment and is essential to maintain profitability.Navigate to residential landlord insurance website
Even with a damages deposit, when a tenant vacates a property the landlord may still be left with a large bill to put the property back into letting condition for any future tenant. A security deposit may be as much as two or three months rent, but this may not cover the cost of a new bathroom or a new kitchen that has to be replaced or even a basic redecoration and replacement carpets beyond normal wear and tear.
Law is also in favor of tenants if the landlord does not maintain the property in living condition. Most of the tenants do not have an insurance of their own since they know this fact that by law the landlord is bound to cover the damages that have been caused by a defect in the property. In such cases the tenants usually sue the landlord and the law gives judgment in the favor of the tenants.
Insurance for landlords has developed in leaps and bounds over the last decade as the buy to let market has matured. Settlements and awards in favour of tenants have become financially viable for lawyers to pursue because there is an investment property that can be attacked to release payments for damages. Insuring the property is not just about protecting it from fire and theft but unscrupulous claims that can be very costly to defend.
No matter how high premium you are paying, it is much more important to determine the ability of the company to settle the claims. Each passing week means another week of unsettled claim and another week of rising mortgage cost. If the insurance company does not have a good reputation when it comes to settling the claims then this type of landlord’s insurance is of no use. There are other factors that need to be considered as well for example whether you will need to handle the cost from your own pocket before the company will reimburse your finances.Read More