Insuring your Rental Property

Home rental can be quite a sticky situation!  I work with several people who opted to rent their first home rather than sell it off.  Mostly due to the declining property values in the area I live in, it just wasn’t feasible to sell your home the last few years.  Renting can really be a good idea for those interested in building up additional equity, selling at a higher value, getting out from an underwater mortgage, and simply owning an investment property into retirement.  That being said, it comes with its share of headaches as well.  Unfortunately, there are many unsavory renters out there that will inevitably damage your home, fail to pay rent on time or at all, and sometimes both!  This is why cheap rental insurance, or cheap landlord insurance as it’s called in the U.K. , is essential and vital to securing the financial security of your rental property.

Rental insurance isn’t for renters anymore, it’s also for the homeowner to secure his property.  Renters that fail to come up with their rent, and thus are forced to leave, may become disgruntled and wreck your property.  The variety of services are quite vast, and can cover a new landlord, and there are special discounts for homeowners with several rental properties.  Rental guarantee insurance is another great feature.  As I said earlier, renters can be dishonest and shady at times, and there are great lengths they can go to avoid paying their monthly rent.  This rental management company, and insurance providers ensure that you receive your monthly rent regardless, and even during lull times when your property is vacant.

Real estate can be a great investment, especially in retirement, but it’s also a highly illiquid one.  Make sure you secure this investment just like any other.

Trackbacks

  1. […] Justin Weinger gave us 2 pretty interesting articles from 2 different blogs. Kind of strange, but both pretty good, and so we decided to include them. Enjoy his tips on personal finance strategy,  and his take on whether to insure your rental property. […]

  2. […] Jay from Daily Fuel Economy Tip presents Insuring your Rental Property. […]

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