Insurance
Why is Landlord insurance important?
Landlord insurance can help cover the costs of repairs and replacements in the unfortunate event of damage or theft by a tenant or an external party. Owning and managing rental properties can be a source of stress and anxiety, especially when unexpected events occur.
What does investment property insurance cover?
Legal expenses related to tenant disputes, eviction, and property damage are also typically covered. Depending on the policy, landlord insurance may also cover the costs of repairing or rebuilding following damage caused by a tenant or their guests.
What happens if you don't have landlord insurance?
If you don't have landlord insurance, you'll be liable for repair costs to your property should your tenants (or their guests) cause damage. While you can minimize the risks of this happening by putting prospective tenants through a rigorous screening process, it's not only malicious tenants who cause damage.
Do you need both home and landlord insurance?
Home and contents insurance protects your home against damage or accidents. Landlord insurance covers you for the same things, but also covers you for loss of rent and malicious damage by your tenants. If you're a landlord, it's a no-brainer.
Is landlord insurance tax deductible?
Protecting your investment property against underinsurance is an important step. The two most common insurances you need for a rental property include landlord insurance and building and contents. Your insurance premiums are tax deductible.