When you are a landlord,
there are new and added financial responsibilities. Insurance is there to
protect you from having to face these responsibilities on your own. The
principle of insurance is to reduce the severity of a loss to an individual, by
spreading the loss to others with the same or similar interests. Before
you purchase an insurance policy, make sure you know the risk you need to have
covered.
What type of tenant will you have? Prior to renting your suite, you should
screen and interview several potential tenants before deciding on one. You want
to make sure your tenant is reliable.
Will the suite be left vacant? Insurance policies have a time limit on how long
a property can be left vacant, before the coverage is void. If there is the
possibility the property may be left vacant, ensure you have appropriate
coverage.
Can you survive without your rental income? Rental Income can be lost for
several reasons: loss of employment, sudden move, or a problem with the suite
causing the tenants to leave. There is coverage available to protect your
rental income.
As the property owner, what are you liable for? You are liable for any damage
your property causes others. You are responsible for people's general safety
while on your property, if there is a hazard and someone suffers a loss,
liability insurance can reduce your loss. You can get coverage for employees
(people that are paid to work on your premises) and public (people that
lawfully enter your property).
Is there anything else I can get covered? Most companies have different
options, coverage and rates. It may take some shopping and comparing, you will
find the policy that is right for you and your specific needs.
About the Author
James Cruz is the Owner and Insurance Advisor of JCruz Insurance. James provides comprehensive advice on insurance policies for each of his clients, specializing in Home Insurance, Life Insurance and Car Insurance. He also offers online auto insurance to make the entire process as simple and straightforward as possible.
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