Why should I consider let property insurance?

Landlords rental insurance is a specialist type of insurance for landlords. It is designed to take the risk out of letting a property, at a low monthly or annual charge. There is always the chance that your tenants won’t pay when you rent out a property – no matter how extensive the measures you take against this are. In this day and age, a growing number of people are trying to get away with not paying what they owe to landlords.

Most commonly, landlords use their rental insurance when a tenant vacates the property unannounced – without paying their rent – leaving the landlord with no way of finding them. If you have rented out properties before, you will probably have experienced problems like this. The landlord can claim back what they were owed in rent from their insurance company.

Landlords rental insurance can also help if a landlord has to take legal action against a non-paying tenant. For example, if the tenant is constantly making payments late, their landlord may wish to evict them; if the tenant won’t leave voluntarily, legal action will have to be taken. This avoids the situation of the landlord attempting to take matters into his own hands, which could lead to further problems for all parties involved.

It is vital you take out let property insurance if you are planning to rent out a property. This is even the case if you are only renting out part of a property – for instance, the outhouse of your own home; just because they are living in your back garden, it doesn’t make it impossible for them to leave without your knowledge.

Don’t leave yourself at risk; protect yourself financially. The cost of insurance will pay off when it helps you in a situation that could have left a large dent in your finances.

What is landlords rental insurance?

Landlords rental insurance is a specialist type of insurance for landlords. It is designed to take the risk out of letting a property, at a low monthly or annual charge. There is always the chance that your tenants won’t pay when you rent out a property – no matter how extensive the measures you take against this are. In this day and age, a growing number of people are trying to get away with not paying what they owe to landlords.

Most commonly, landlords use their rental insurance when a tenant vacates the property unannounced – without paying their rent – leaving the landlord with no way of finding them. If you have rented out properties before, you will probably have experienced problems like this. The landlord can claim back what they were owed in rent from their insurance company.

Landlords rental insurance can also help if a landlord has to take legal action against a non-paying tenant. For example, if the tenant is constantly making payments late, their landlord may wish to evict them; if the tenant won’t leave voluntarily, legal action will have to be taken. This avoids the situation of the landlord attempting to take matters into his own hands, which could lead to further problems for all parties involved.

It is vital you take out landlords rental insurance if you are planning to rent out a property. This is even the case if you are only renting out part of a property – for instance, the outhouse of your own home; just because they are living in your back garden, it doesn’t make it impossible for them to leave without your knowledge.

Don’t leave yourself at risk; protect yourself financially. The cost of insurance will pay off when it helps you in a situation that could have left a large dent in your finances.

Finding A Franchise Location

To run a successful franchise, franchisees need to operate from a location that is affordable, spacious enough and in many cases in an area where a large number of people go every day.

Good franchises will provide detailed selection criteria with information covering subjects such as the population of the surrounding area and the age and gender makeup if necessary, how many people visit an a town or city centre or shopping area and the amount of parking available.

With franchises that do not require face-to-face sales in a building, such as accountancy, internet and merchandising franchises, and also home maintenance and services franchises, an office or warehouse is often the best place to work from.

However, others need to sell products to customers either mainly or solely face-to-face, therefore they need to assess the places in their region where are lot of people visit or go past.

Large shopping centres or malls are certainly a place where there is a high amount of foot traffic and can present franchisees with an excellent location. It is likely though that extra charges such as area maintenance, association dues and advertising will have to be paid.

Other options are city or town centre shopping areas or neighbourhood shopping complexes in suburb areas which usually contain a supermarket and a few other large retailers.

These can vary in quality and the number of people who visit them so it is important to do extensive market research and obtain, if possible, figures detailing the number of people who shop in these areas.

Wherever the retail location, franchisees need to bear in mind where the retail spaces available are in relation to competitors and what its neighbouring stores are as most of them may attract and different target audience to what the franchisee is looking to get.

Once a possible location has been found, most franchisers will want to approve it and as well as how many people could potentially visit it and its cost, the franchiser will take into account the size of the building.

This is because there needs to be enough room for all the equipment and other stock, with ideally room left over if the business is successful and needs more staff and equipment.

The one potential obstacle left if the franchiser approves the building is the lease negotiation, which should involve a real estate broker.

Along with the franchiser and broker, franchisees need to ensure the rent and other costs such as real estate taxes and landlord insurance are reasonable.

In addition, franchisees need to ask if there is any financial aid available from the landlord in the form of free rent allowances and tenant improvement allowances.

What should I know about homeowners insurance that gives me the most for my money?

Homeowners insurance can seem complicated at first, but armed with a little information, you can understand and appreciate its’ value. As with any insurance, you purchase it with the hopes that you’ll never need to cash in on it!

Most mortgage lenders require homeowners insurance; and many landlords are requiring their tenants to have some form of insurance, as well.

What Homeowners Insurance Policies Provide

A standard homeowners insurance policy will typically provide coverage for costs that are related to the following:

Interior & Exterior Damages: if the outside or inside of your home is damaged by fire, lightening, hurricanes or vandalism (as well as other covered disasters) your insurance provider will compensate you enough to repair the house or even completely rebuild it if necessary. Damages caused by floods, earthquakes or from poorly maintaining your home is not usually covered. These instances may be covered if you purchase additional riders or coverage options.

Damage or complete loss to personal belongings: Things like clothing, appliances and furniture, as well as other contents of your home are covered by homeowners insurance if they’re destroyed in an insured disaster. Most insurance companies will cover you for 50-70% of the amount of insurance you have on the structure of your home. This means if you insure the home for $200,000 you would have around $140,000 in insurance coverage for the contents of your home. Make a list of everything in your home and their approximate values to see if you have enough homeowners insurance coverage.

Personal liability coverage for damage or injuries: If you or a family member (including your pets!) causes injury to another person, the insurance will cover those medical costs. This coverage also provides compensation if someone in your family damages someone elses belongings.

Hotel or house rental while repairs are made: if your house is destroyed, you will find this coverage to be your favorite coverage! While the home is uninhabitable and being repaired or rebuilt, your homeowners coverage would reimburse you for the amount you pay in house rent or hotels, meals at a restaurant and any other incidental costs incurred due to being unable to stay in your own home. Policies due impose strict daily limits as well as total limits for the amount of money they’ll provide for this coverage.

How Much Does Homeowners Insurance Cost?

In 2005, the average homeowners insurance coverage in the United States was around $760, annually. Premiums will vary based on how much coverage you choose to purchase, where you live, and the amount of liability protection you want to have.

Before choosing an insurance company, as with any insurance, you should do some comparison shopping and decide which company can offer you the best prices for the amount of coverage you wish to have.

Landlords insurance in brief

Insurance can be very confusing. Most of us simply want some financial protection if something goes wrong: but there are so many different types of insurance, it is difficult to choose the right one. The same goes for landlords insurance – new property owners are often baffled when it comes to taking out cover. Luckily, it is very easy to understand.

Landlords insurance is taken out by those who rent out properties for protection against unexpected incidents. There are a number of areas it can cover:

  • Loss of rent; this comes into play if, for whatever reason, the landlord doesn’t receive their regular rent. The tenant may have left the property without paying what they owe, leaving the landlord with no way to contact them. Alternatively, it may be that – for whatever reason – the property can’t be used for a period of time (for instance, if it has been damaged).
  • Contents cover; this financially protects against the loss (through theft) of damage of any items within the property. The items will either be replaced new for old, or the landlord will be financially reimbursed.
  • Fire, flood or theft; if any of these incidents take place, the landlord can claim the costs back from their landlords insurance provider.
  • Public Liability; if the landlord is found responsible of negligence by a court when a tenant has been injured in the property, any fines will be paid by the insurance company.

All of those renting out a property, or part of a property, should have insurance cover that applies to all of these key areas. Even the most careful person can find themselves in financial trouble when something unexpected happens. Taking out insurance not only provides you with financial protection; it gives peace of mind.

Tenancy Deposit Regulations- the Facts for Landlords

As a landlord you need to be certain about the best way to protect yourself against the financial impact of having tenants who damage your property. These can be the very people who either fail to pay all the rent they owe you, or fight to get their deposit back – even though this is required to cover the cost of damage – costing you time and money.

As you will know, since April 2007, any deposit taken from a residential tenant under an assured shorthold tenancy agreement needs to comply with new legislation.

In effect this means that any deposits taken must be placed within a government approved scheme either by placing the monies in the hands of an approved third party, or by having the deposit insured for the benefit of the tenant.

Both these can involve the landlord in administration and lead to uncertainty over the level of protection provided. This has had a significant impact on the entire buy-to-let sector, potentially reducing the attractiveness of this form of investment. There are however, a number of ways in which the burden on landlords can be managed or virtually eliminated.

Do nothing …

One of these is to take no action at all; that is not to take a deposit and to rely on tenants not damaging the property. For most landlords, this is unlikely to be an attractive option.

Use a designated deposit scheme …

While this appears to be the simplest solution, it does have potential drawbacks, not least of which is that these schemes either involve cost or, if free, offer no interest on the money deposited (which is how the administration is paid for). In general, they are unlikely to provide any dispute resolution service, so there could easily be additional expense when a tenant leaves, should the landlord wish to retain any of the money to make good damage.

Use a ‘combined’ deposit scheme …

Some deposit based schemes also include dispute resolution, but these will involve fees covering both membership and a charge per letting. Several schemes are promoted by the Residential Landlords Association and can include a combination of holding deposits and insurance in order to provide maximum protection to all parties.

A dedicated tenants deposit insurance solution …

An alternative which is proving increasingly attractive to many landlords is a landlords insurance scheme offered by Alan Boswell Group. This obviates the need for a deposit to be taken while still providing full protection for the landlord for up to £1,000 worth of damage in any period of insurance (once the damage exceeds £100 in value).

In each case, a check of the tenant is undertaken by Keysafe (UK) Ltd, giving you peace of mind of knowing that you are not taking on a tenant with a poor rental history. The insurance covers damage discovered within 14 days of the end of the tenancy period and is offered in addition to the Alan Boswell landlords insurance policy.

Costs range from as little as £42 a year; less for members of the National Federation of Residential Landlords.

As an extra to property owners insurance, Alan Boswell Group also offers rent guarantee insurance, at additional cost, if required. This can indemnify you should a tenant fail to pay your rent within the terms of the agreement and you are unable to recover the arrears from the deposit.

General tips …

You should always make an inventory of the property before each tenancy commences, in order to help with dispute resolution. Ideally, digital photographs taken in advance will help both landlord and tenant should the need arise.

Let properties insurance in brief

If you are a landlord, or are considering becoming a landlord, you need to be thinking about protecting yourself financially against potential incidents. Let properties insurance allows you to do this; like with any other kind of insurance, you pay a regular fee in exchange for protection in the case that something goes wrong. It is specifically designed for the needs of landlords. What it typically includes is based on the problems past landlords have experienced.

Particularly if you are new to the landlord industry, you should opt for a policy that offers full landlords cover. This will cover a number of main areas:

  • Buildings insurance, which helps if there is an incident at your property such as a fire, flood or storm. It will allow you to claim for the costs of repairing the damage caused.
  • Contents insurance; this protects you if any items within your property are stolen or damaged. Policies usually have three categories of property here: furnished, unfurnished and partly-furnished. The cost of the insurance depends on the category the property falls into.
  • Public liability insurance, which financially protects you if a tenant injures themselves in your property and it is found to be legally your fault.
  • Rental insurance; this comes into play if a tenant, for whatever reason, doesn’t pay their rent.
  • Legal expenses insurance; this covers the costs of any legal action that is required to do with your property (for instance, if you need to evict a tenant).

It is highly advisable for you to take out let properties insurance whenever you choose to rent out a property. As well as financial protection, it gives peace of mind. The low costs of the insurance policy will be far outweighed by the potential benefits it could provide.

Apartment renters insurance: How renters insurance works – Part 1

Renters often think that because the landlord has insurance on the home or apartment building, the possessions they have in the apartment are covered under this insurance. Many find out too late that this is not the case when some accident occurs and they lose everything. When you are renting, ask yourself if you have the finances needed to replace everything you have if the apartment is a complete loss.

Renters insurance offers the same type of coverage on personal possessions as that of homeowners’ insurance. If your apartment is broken into and some of your possessions are stolen, then the policy will cover the cost. The same thing applies if you have a fire in your apartment or if you incur a loss due to broken water pipes or a sewer problem. The damages to the apartment itself and the property will be covered under the landlord’s insurance and your renter’s insurance will take care of your personal property. You also need to have separate flood insurance as a separate clause in your policy.

Along with coverage for your personal property you also have liability coverage under renters insurance. This means that if a person is injured while in your apartment or when leaving, you could be sued for damages. With liability coverage, your insurance policy will pay for the medical expenses and if the case goes to court, the insurance company will also pay the judgement awarded by the court. Without such insurance in place, it would mean financial disaster for you and your future.

The cost of premiums for renters insurance is considerably less than that of homeowner’s insurance. When choosing a policy, you should always opt for replacement cost in the coverage of your personal possessions. Even though this is a little more expensive it will pay off in the end if you do need to make a claim to the insurance policy you will get enough money to replace what you have lost. This is because replacement cost means that you will get the current value of the possessions and what you paid for them when they were first purchased will not matter.

When there are several roommates in an apartment, each person does not need to have his/her own renters insurance. You should check with the insurance company about this, but it is best if all roommates are listed on one policy. This may pose a problem though if the living arrangements are temporary.

There are limits listed in a renters insurance policy as to how much money will be paid in case of a claim. Read over these limits carefully to make sure that you do have enough coverage and ask that it be raised, but you may have to pay extra for this. For example, if your policy allows for $2000 for the theft of firearms and the firearms that you own are worth more than this, you will need to have additional coverage.

The policy you have in place for renting covers you for the term of the policy, which is usually a year, no matter where you are. You can be on vacation for most of the year and still have coverage in place on your apartment.

Landlords Building & Content Insurance Information

Are you a first time buyer of landlords insurance? Best way to look out for several insurance policies related landlord and to obtain a best deal at an attractive cost is with the help of an expert broker. Understanding the terms of each of these policies is essential in order to know what all does these landlord insurance policies cover.

Remember, that in times of a calamity, if you are insured against landlord building and content insurance and you want to make a claim for the damage caused, you should have an inventory, a list of all the things that are missing or damaged in your house. It’s better to prepare them before hand, as you will not be in a position to recall all items at home, while you are stressed out. If possible, take a video of all the inventories at home, but if your inventory and video also gets damaged in the event, then, you will have to recall it yourself. So, keep your video tape or the inventory list in place other than your house, with this you can retrieve back your items if it goes in flames. A landlord building and content insurance covers your exterior part of the building and content covers items within your house.

Are you pondering over certain questions like these. Experts find answers to your queries:

Are tenants contents insured against landlord’s insurance policy?

Not at all. Landlord content insurance policy covers only the landlord’s items, contents that he owns and has offered a furnished building to a tenant. Any items other than the landlord’s in the house, will not be insured. Sofas, chairs, tables and other valuable items owned by the landlord which may be used by the tenant who’s living in this house will be insured, so damages to the landlord’s assets will be properly compensated. A tenant has to avail a different insurance to cover his own items.

Can I buy a normal insurance for a buy to let property?

As you are renting out your property to a tenant, it is considered commercial and will be covered under business insurance, rather than landlord building insurance and you become liable to this. The amount you get from your tenant may be less, but it is still considered as a business property. YOU have certain legal responsibilities towards your tenants in a way that you do not have for your own home.

Buy to Let Building Insurance

Buy to let building insurance often includes insurance policies that cover buildings such as residential buildings, tenanted homes and commercial buildings. These types of properties fall into the class that will necessitate the obtaining of let building insurance. There are many benefits associated with this type of insurance and these will be further discussed in this article.

One of the largest benefits of buy to let building insurance is the fact that there is wide coverage. This means that the property is covered by a policy that insures it whether the property is tenanted and also if the property is unoccupied. This makes things a lot simpler for the landlords as they do not have to purchase separate unoccupied property insurance when they are in between tenants or if they are doing repairs and the property is unoccupied.

This coverage is typically quite expensive due to the fact that it evaluates risks such as vandalism and other serious issues that can increase the costs associated with repairs and claims. These losses can also translate as losses to the insurer when a claim is made on the policy so most of the insurers cater for this with higher premiums. This is something that is not avoidable as the risks are real and sometimes you have to cave in to the higher premiums to ensure you are protected for any eventuality.

One of the other benefits of buy to let building insurance is the provision of coverage for public liability insurance which is now more important than ever in the time that we live in where every simply matter is translated as a means to get rich fast. While some claims may be valid the majority can be quite suspect and insurance coverage is quite important.

This protects the landlord if there is any legal action due to injury of tenants on the premises of the property. Thee importance of this cannot be understated. In this way as well the same coverage is applied to any employees on the premises. If any injuries occur with employees they are also covered under the outlines of the policy which also protects you as the owner of the property.

Buy to let building insurance will cover all losses and damages that are the result of incidents such as fires, lightening, earthquakes and other natural disasters. It will also cater to water damages, theft, malicious damages and other incidents. The contents of the properties are also insured in most cases but this has to be checked if you need this extra coverage.

It is important when you are looking to purchase buy to let building insurance that the company you opt for is experienced in this field and known for reliability and has a good reputation of the honouring of claims. Get buy to let coverage when investing in this type of business as without it you can face a lot of out of pocket expenses and great losses can be incurred in your investment if the expenses are out of control.