Owners of properties can safeguard their investments by going in for buildings insurance for landlords. This insurance covers the owner for any loss or damage to the property. Items that are kept on the property can also be included in this coverage.
Landlords are quite safe if any catastrophe that befalls their property from natural causes like hailstorms, windstorms and lightning. They can also obtain cover for theft, incidences of fire or damaged caused by smoke. Damage to property caused by any anti-social activity can also be covered. Homes are often vulnerable to floods due to defects in plumbing or other reasons, or short circuits in electricity systems. Any damage caused by these events can also be covered by buildings insurance for landlords. Landlord insurance can also cover damage to property posed by the wrong actions of people who have rented the property.
The items kept within a property can be covered by insurance that offers the cash value of any damaged goods and where the depreciated value of the item is reimbursed. If you require being compensated for the replacement value of the damaged item, premiums can be higher. Premiums on landlord insurance are paid quarterly, half yearly or annually depending on the policy and the cover required. Landlords owning many properties can get substantial discounts if all the policies are taken out by the same insurer for each of the properties.
Serious problems that arise for landlords who rent out a property comes from tenants defaulting on their payments. You can also get a separate insurance for landlord rent guarantee which can safeguard a landlord from the defaults. Each renter has to have a separate policy, and insurance companies may require vetting them before they provide the necessary cover. This insurance gives a landlord immediate protection when a tenant defaults on the rent payment. There are often a ceiling on values, and you can arrange for cover for six months or a year. Payment is made within a fortnight of the default, and some insurance policies will also offer to take on expenses for any legal action needed to evict the tenant. Premiums are the one off type and have to be paid for each tenancy agreement.
Landlords must decide on the insurance cover they want to take after taking all factors into account. It can always help if an exercise is undertaken, to determine costs and likely risks and benefits, and then decide on the insurance.