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Whilst it’s the last thing that you’ll want to think about happening, accidents and incidents can occur and leave your property damaged and in need of repair. It’s important to be prepared for such circumstances, especially if the damage is extensive and ends up costing a small fortune or if it means that you’re not receiving rent while the repairs take place.
We’ll explore the reasons why you should make sure that you’re properly covered with the correct landlord insurance.
Financial protection
If your property suffers extensive damage, such as that caused by a fire or a flood (whether accidental or done with intent), it may be inhabitable for some time. This can leave you without rental income. The right insurance can ensure that you don’t take a hit financially if the worst happens. If your tenant has to move out until the building is safe and in a liveable condition, your policy should cover any shortfall.
Property damage
Whether done maliciously or accidentally, damage to your property can leave you out of pocket and having to fork out for repairs if you’re not properly insured. The tenant is responsible for reporting any type of damage, including wear and tear as well as more serious issues, but sometimes a problem is not addressed until the end of the tenancy agreement period. In this case, you might find yourself having to carry out lengthy repair work before you’re able to advertise for new tenants.
However, it’s also important that you, as the landlord, carry out regular, thorough checks of the property to address any issues that may cause damage further down the line and are not the fault of the tenant. This includes potential leaks and roof damage.
It’s also down to a landlord to repair any damage caused by a crime such as burglary, including broken windows, locks, and doors. This should be addressed as a matter of urgency to ensure that the building is secure for the inhabitants.
Reputation
A tenant will want to know that they’re choosing to rent from someone with a positive professional attitude who takes their responsibilities seriously. If you find yourself liable for injury or illness from your property, it could put your reputation at risk and impact future rentals.
The landlord/tenant relationship also works the other way round, with tenants more likely to be open and honest with a landlord who encourages communication and listens to concerns. This, in turn, could lead to less turnover of tenants and regular, on-time rental payments.
While you can’t plan for unexpected situations that result in damage to a property, following these guidelines will make sure that you don’t suffer major financial implications should repairs be needed.
