Landlords, Don’t Get Caught Without Buildings Insurance!
When you decide to become a landlord, it’s very tempting to cut corners in order to make more money. The last thing that you want to do is jump into something that is going to end up taking up every last penny that you have. Not everyone is meant to be a landlord, and to do it right requires a lot more concentration and patience than people give it credit for. For example, you don’t want to get caught without buildings insurance.
If you’re not clued in to what buildings insurance actually is, here’s what you need to know in a nutshell: it’s protection for the entire structure of the home itself. That means if the house were to burn down, you would be able to file an insurance claim to cover the cost of replacing the home, but not the contents unless you took out a separate policy for that.
You don’t want to get caught without buildings insurance because you don’t want to have to pay for repairs out of pocket if you don’t have to. When you start a business, you have to start looking at things form a business perspective. Risk management is one of the biggest issues that business owners of all types have to face, regardless of the industry.
Buildings insurance is a key factor in smart risk management for landlords because it protects your investment from the inside out — especially if you add in a policy to protect the contents of the home. Sometimes this can be a draw for tenants as well. If they see that you care enough about the property to take out insurance, they will want to stay there much more often.
Compare that to the fears that tenants get when they find that you don’t have proper buildings insurance. They start wondering and worrying that if you can’t be bothered to take out the essential insurance packages on the structure that they’re going to call home and pay you rent money for, what else will you overlook? Even if it’s not required, buildings insurance sends a strong message that you definitely care about the property in question.
Overall, it’s important that all landlords understand the need to get necessary coverage on their rental homes. If you wouldn’t go without insurance on your main home where you live, why would you want another family to go without coverage on their main residence? Think about it and get buildings insurance today!