At Rentwest we do everything possible to ensure that every tenancy runs smoothly, however even the best tenants can have difficulties. Landlord insurance is a security measure that is recommend for everyone renting out a property, whether it be an investment or their own home. While each policy is different, most policies generally cover the following four things:
Coverage for unpaid rent
Tenants defaulting on their rent. The period covered can range anywhere from 6 weeks to 52 weeks, depending on the circumstance.
Coverage for malicious and accidental damage
While the vast majority of tenants do the right thing, there are some who damage properties intentionally and then there are the times when things happen accidentally. Landlord insurance will cover you for damage that is caused intentionally and maliciously, with some also covering accidental damage.
Coverage for legal costs
Landlord insurance provides liability coverage for court related matters or if someone is injured on your property and you are found to be responsible. You may be protected from legal action and associated damages that may be awarded.
Property investors who are renting out their properties may be able to claim their landlord insurance as a tax deduction. You’ll need to speak to a tax specialist to hash out the details.