Landlord Buildings Insurance
Purchasing property for the sole intention of renting it out is a great way to make money. Some countries actually encourage you to do this and offer you tax incentives. But like any investment your opportunities to make a profit can be severely hampered by problem tenants and periods without occupancy. That is where Landlord Buildings Insurance comes into its own and helps to safeguard your investment.
There are a number of different types of Landlord Buildings Insurance each of which will potentially save you thousands of dollars and ensure you will make money with your investment.
Depending on the country you happen to be in you can obtain Landlord Buildings Insurance for coverage in areas such as;
Vacancies: Some companies will insure you against your property being vacant for periods of time.
Damage: As with most insurance policies you can obtain coverage for most types of damage including storms, fires and even damage caused by the tenants themselves.
Public Liability: Most companies will again provide coverage for accidents that occur to people whilst they are upon the property or as a result of an injury caused by something occurring at the property itself.
Landlord Buildings Insurance can apply to the different types of property as well. You can obtain coverage for Residential Properties, Commercial Properties and combinations of Residential and Commercial Properties. For each of these the premium for the policy will depend on the value of the property, whether you are insuring a block of flats, a home or a large commercial area. There is a policy available for each investment though so you can get the coverage you need.
As with all insurance policies some people will cut corners and either fail to obtain Landlord Buildings Insurance or fail to obtain adequate coverage. The great thing about insurance on your investments is that you can generally claim the cost of the policy against your tax return, which obviously reduces your tax liability, or increases your return if your properties are negatively geared.
If you have not obtained insurance for your property then you really need to do yourself a favour and obtain some quotes. You might be surprised at just how affordable the insurance coverage might be. You should also ask yourself the question. What would happen if there was an incident where you needed the Landlord Building Insurance and you just didn’t get around to obtaining the coverage or decided that you could not afford the premiums? How much is your property worth if it is burnt to the ground?
I am not one to try and scare you, but I have seen and heard many horror stories where property investors have been ruined by not having the required insurances. If you are unsure of exactly what you need then you can always speak to a broker who will advise you on the best Landlord Buildings Insurance for you investment.
Finally I would urge you to weigh the cost of not having insurance on your investment properties, particularly when the premiums are generally tax deductable. You might be able to get away with not insuring your own personal contents but not having insurance on a large investment is crazy. You might also find that lenders will require you to obtain Landlord Buildings Insurance to comply with the terms of their loan agreements.
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