Protecting Your Investment
Individual decide to become landlords for many reasons, some for economic reason, many have dreams of collecting money while they sleep. However, you may not sleep well when you think of all the new liability you have just taken on. Mainly because it is uncommon for the landlord or the tenant to carry the right amount of insurance.
When you become a landlord taking precautions are a must. As the property owner you have taken on additional financial risk as well as personal liability.
Financial risks include, loss of rent due to damage to the property from fire or other disaster. In this case you will no longer be getting monthly rent, but you still have to pay the mortgage.
Liability comes into play should there be an accident on the property, not just involving the tenant, but their guests or uninsured repairmen working on the property.
Ensure that you are carrying enough dwelling insurance or rental insurance to protect yourself. If your existing limits where to be exceeded it is then possible for the tenants to go after your other assets.
There is a wealth of advice and tips to protect yourselves with landlord insurance, just contact your insurance agent to find out what they provide and shop around with other agencies to educate yourself. Keep in mind that policy terms need to be carefully examined and compared as coverage and eligibility requirements vary.
Being a landlord can provide a lucrative income, just make sure they you protect yourself.