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Landlord Insurance

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Michael | 31 Jan 2013, 12:48 PM Agree 0
Hi all,

I think everyone would agree, that having landlord insurance is a must, when leasing a property. In fact, in my personal experience, I have had one property affected by water damage while being rented out and another had a bad tenant who we had to evict. In the latter case, our insurance provider processed the claim properly and we had no trouble except for the time they took to process it.

In the other case, the insurance company would not pay out for the lost rent (which is a significant amount, even though they clearly indicate in the covered items, lost rent). I was vey disappointed with this other provider. It just goes to show that you need to be very careful in your selection.

I can provide more information about each, but I am not sure if this forum is the place.
  • Eos Property | 05 Feb 2013, 02:39 PM Agree 0
    I thought I had responded previously (lost post) so apologies for double post.

    Insurance is an essential for any property owner and it isn't because of loss of rent, damage or theft. The big ticket item is exposure to public liability claims which can, if successful, amount to claims of thousands and thousands of $. Even if not successful - the stress resulting from the action being launched would be incredible.

    Know one investor who was sued by their tenant who claimed they had tripped on loose carpet on a set of stairs. The basis of the claim was that the landlord had done nothing to fix the issue. Fortunately the landlord & property manager kept meticulous records and, not only hadn't the matter been reported by the tenant but there was no loose carpet.

    Just imagine, though, for a minute, what would have happened if the claim was seriously pursued and damages awarded to the tenant.
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