Real estate is a tough act, but when done right it can be very rewarding. There are a lot of things that can impact the return on your investment in real estate, especially for landlords. When you own and manage properties, whether that’s an apartment building, hotel, or even office buildings, things can come up that can seriously affect your profits. From acts of nature to negligent tenants, here are a few things you should consider if you own properties that you rent out and why you need a real estate insurance policy.
One of the most obvious risks where renting out your properties is concerned is bad tenants. It’s not uncommon to hear horror stories about property owners who simply wound up with some of the most frustrating tenants possible. Not all policies will be the same, but a lot of landlord insurance will cover your personal property that is left in the house such as microwaves, refrigerators, or lawnmowers. Liability insurance may also be a wise investment for landlords in the event that a tenant or guest gets injured on the property.
Acts of Nature
Bad tenants can be a situation that can be avoided with proper vetting and precautions, but there are things you simply cannot prepare for. Acts of nature can seriously mess up your income if a storm or some disaster strikes and damages your home. The good news is that some insurance policies for landlords will cover these types of damages that may be caused by fires, lightning, wind, rain and other natural problems. Some policies may even cover the loss of income that may occur if you need to repair your rental property and cannot rent it out during that time.
The Right Plan
When you own a property and choose to rent it out, you’re choosing to put your money out there in the hopes of a return on your initial investment and a decent income stream from your investment that can either supplement your current income or be your entire livelihood. That’s why it’s necessary for you to consider insurance for your rental properties. You never know what may happen and you need to be protecting your investment.
If you want to find the perfect insurance plan for your rental property, ABCO can help. Contact our expert team today to discuss what we can do for you!