Why Do Landlords Need Landlord Protection Insurance?
Landlords are those who rent out properties to people who may need a space to live in. It seems like being a landlord is an easy responsibility. However, others see it as a complicated duty because of so many terms related to it such as the landlord insurance?
A landlord insurance is a type of insurance given to the landlords. It works just like how a car owner needs a car insurance or a person who needs health insurance. Landlord insurance is a type of insurance that covers the possible financial losses relating to rental properties.
Landlord Protection Insurance
The insurance protects the property of the landlord out of possible damages brought by the tenant. This includes physical damage of property due to carelessness, physical loss of properties because of thief’s entry due to failure of the tenant to lock the door, fire because the tenant left the candle lit, or damage in equipment because of water spill caused by failure of the tenant to close the faucet or the shower. These are just some of the things that can possibly happen, so to protect you from loss, insurance for property protection must be established.
The landlord, as the owner of the house, has the right to impose rules regarding the safety of the people and the house itself. He can freely decide what he wants the tenants should do from getting inside the house, maintaining it, paying the monthly rent, and leaving. As the tenant enters the house on his own will, it is presumed that he agrees to all kinds of rules appropriately and does not intend to breach it out. For example, the house has a table and four chairs. The tenant is not allowed to sell the chair, nor damage it even if he is paying the right amount of rent. Paying the rent faithfully does not even give him the right to everything. Instead, he is obliged to take care of things inside the house even without being told to. That includes immovable properties as well.
Failure to Follow Rules
Failure of the tenant to follow what is just might lead to the landlord having an argument with a tenant. This might even lead to further damage or loss of property. In worst cases, wherein the tenant failed to maintain good usage of things that leads to fire, the insurance comes in to give back to the landlord the value of the thing lost in exchange of keeping a monthly insurance payment. If the landlord has not acquired any insurance at all, damages to the property will be covered by the landlord completely. He will not receive any reimbursement as well. So if the tenant refuses to claim the fault and pay for the damages, the landlord cannot run after anybody without sufficient evidences. It would be hard for him to recover again.
No matter how careful you are in choosing clients, cases like those stated above might also happen without any notice. Therefore, you have to be prepared by acquiring in advance a landlord insurance than regret in the end the things lost from you. You surely do not want to lose in your business, don’t you?