Many investors make the very costly mistake of assuming that building insurance is sufficient, however building insurance does not cover anything that the tenant does wrong – damaging your property or non payment of the rent.
Most insurance companies offer landlords insurance as an add-on package to building insurance if the property will be an investment. As with any type of insurance cover, the wording and events covered can differ greatly between companies so it is important to read through the policy carefully.
The cost of landlords insurance varies between providers depending on where the property is located, what type of property it is and how much you will be receiving in rent from your tenants. However the following should definitely be covered in your policy: Damage, Rental Loss or Default, Liability Cover, Burglary or Contents/Fixtures.
Even though having landlords insurance may seem like a “no brainer”, take up by landlords is low.
Don’t allow your hard work and savings to be compromised! Take out an insurance policy that will help protect one of your most important assets!