hoj. Home Insurance. January 07th , 2018.
It is essential for a landlord to have building insurance on rented property as a landlord would have invested a large amount in his property and by letting it out, he wouldn't want to put his property at any risk and would want to protect his property against any damage. A property owner uses the rent as an extra income and that income needs protection.
Tenants, who rent out properties, can protect their possessions in the property by having renters insurance, whereas the landlord of the property will have insurance for any damages to his building. Therefore if there were unforeseen circumstances, the tenants would then be given a place to stay through renters insurance and will also cover all personal items that are damaged or stolen.
However the landlords of properties go for building insurance when renting out their property as it is essential to protect their assets. It would be a huge loss when losing the money you gained from renting your properties because there was no insurance policy in place. In these difficult financial times Landlords tend not to have cover for their property as they assume this is a better method to cut costs and save money, however they don't realise how risky that can be, it also means that if in the future anything happened to their property that will be result in a huge loss. Therefore it is better not to take the risk of not having building insurance on rented property. If for any reason you don't have building insurance it is a good idea to do so as soon as possible. For example in case of damage such as flooding to the property or fire damage, it would be very unfortunate for the landlord if there was no cover on the property. This would mean that not only is the rented out property safe and secured, but would also mean that the home which is rented out would be protected against situations such as theft, vandalism, floods, fire etc, however, also for the damages done by the tenants as well.
The prices of building insurance on rented property can depend on a number of factors such as the type of tenants that are living in the house, for example if the insurance would be far more expensive for a group of students living in the house rather than if professionals were renting out the property. It can also depend on the location of the property. For example if the property was in a high crime location the cost of building insurance would be far more expensive due to the risk factor. If the property has a low rebuild value the lower the insurance quote for the property.
Therefore building insurance on rented property helps landlords to recover from their losses that have been caused due to any damages that may have been caused and it is essential to protect your property.
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