Becoming a landlord is a dream to many people for a number of reasons. The opportunity to make money almost completely passively by providing residence to others sounds like a fantastic way to earn money. Truly a dream come true.
It is, however, sadly true that a dream can easily become a nightmare if you aren’t careful, and that is never more clearly true than in the case of landlord insurance and the issues that you might run into if you decide to start operating as a landlord without getting any.
While there is no legal requirement for you to operate under the protection of landlord insurance, it is highly advisable that you take these steps to protect yourself and your assets. Companies, such as KBD insurance work hard to make the process of securing the insurance you need as easy as it can be.
There are plenty of resources online that you can use to help find more information about the various insurance options that are available to you and how you can best make use of them. These insurance options and the guides about them are well worth taking the time to investigate, since any could massively benefit your income.
Without landlord insurance there are many problems that you might come across, some of which are laid out in more detail below.
Sudden Damage to Your Assets
As a landlord your assets more or less are your income, from the houses that you are renting out to the furniture within or the gardens and boundaries of those properties. Without these assets your business and income does not exist, which means anything that happens to badly damage these assets could be devastating to your business prospects and the income that this renting provides.
Losing Out on Your Income
Another particularly nasty issue that you might find more prevalent than you would expect as a landlord is the loss of income from tenants that do not pay. There are plenty of reasons why this happens, from a sudden upheaval in your tenant’s financial situation to disagreements between the two of you. Regardless, the result is the same. You are left without the income that you are owed from that property.
If you had the right business insurance, however, then losses such as these would be covered by your insurance plan, allowing you to relax about potential issues with your tenants.
Protecting Your Mortgages
Finally, one of the most important things to keep in mind when you are making your decision regarding landlord insurance is the fact that certain mortgages will require you to procure landlord insurance. If you fail to do this, it could cause you all kinds of problems with your property and through a complete spanner into the works of your business. You might even be at risk of obtaining money under false pretenses.
It’s never going to be worth risking your buy-to-let mortgage arrangement simply because you don’t want to engage with the process of insuring your business.