When you’re a landlord, it’s crucial to protect your investment — this includes having adequate rental insurance. Without insurance cover, landlords run the risk of losing money and even losing their assets altogether. In this blog post, we’re sharing five important reasons why Brevard County landlords need landlord insurance.
Protect Against Property damage
Florida is no stranger to natural disasters, so property damage coverage is an absolute must if you’re a landlord in Brevard County. This type of insurance covers damage caused by natural disasters such as hurricanes, tornadoes, and floods. It also covers issues you might have with your electrics or plumbing, including fire and water damage. In addition, if you’re unfortunate enough to have a problematic tenant, insurance will cover your property from any damage they cause.
It’s important to remember that different insurance policies cover different things. We recommend all landlords aim for a policy that covers the replacement costs of damage incurred rather than the actual cash value. For instance, if you experience a flood and have to replace your 10-year-old sofa, it may only be worth $200, but buying a new replacement could cost $1,000 — leaving you to find the difference.
Protect Against Rental Default
If, for any reason, your rental property becomes uninhabitable, you may lose out on rental income. For example, if your rental is suddenly overcome with an invasive pest or your tenant finds a severe mold issue. In this instance, it may be necessary to treat the issue, causing you to lose rental income.
Rental default insurance ensures that your property is covered for rental losses if, for any reason, your property is uninhabitable. Again, it’s important to note that insurance terms and limits vary depending on the insurer, so be sure to verify precisely what a policy includes before making a decision.
Protect Against Liability
If a tenant or tenant’s visitor suffers an injury on your property and it’s due to a maintenance fault on your behalf, you could be held liable. This means you could face a lawsuit for medical costs and legal costs. For example, if you fail to maintain the roof of your rental property and it falls in, injuring your tenant, you could be held responsible. Liability insurance can cover a range of potential harm, so it’s important to determine exactly what is and isn’t included.
Protect Against Lost Income
If you have a tenant that is unable or refuses to pay rent, guaranteed income insurance can cover your loss and help ensure you can keep on top of your property expenses. This type of insurance offers financial protection and peace of mind for landlords in the event that their tenant loses their job, has cash flow problems, or has relationship issues.
Most rental guarantee insurance covers a single lease agreement only, so if you have more than one rental property, you’ll need an insurance policy for each one.
Protect Against Emergency Expenses
If you’re a landlord for long enough, sooner or later, an emergency will occur. From leaking pipes and heating problems to tenants locking themselves out of the property to a natural disaster, it’s impossible to predict an emergency. Emergency landlord insurance covers many major unexpected problems that a landlord might face, including the cost to call out and repair.
This type of insurance offers peace of mind to landlords and can help recoup the expense of out-of-hours callouts and resulting repair fees caused by emergencies.
Reliable Property Management in Brevard County
Adequate insurance is crucial for any rental business, but especially in Florida, where natural disasters can happen at any moment. However, not all insurance policies are created equal, so it’s vital that you compare coverage to determine the best one for your needs. If you’re a landlord in Brevard County and need advice on landlord insurance, reach out to the licensed property managers at Rent In Brevard today. Our expert team can help optimize your rental business and ensure you maximize your income and protect your assets.