With all the media hype about the so-called looming fiscal cliff, it’s a good time of the year to remember how to avoid financial disasters and to do what we can to prevent losses. Property Managers with experience know how costly the process of eviction can be, as well as the expense of repairing damaged rental units that have been “trashed” by destructive former residents.
Recently I did some research about a genre of insurance for landlords to insure their rental properties against damage and lost revenue. That fact of the existence of what is often called Landlord Insurance speaks to the unique risks and perils associated with owning residential rental housing.
My research indicates that the most common landlord insurance policy covers damage to the building caused by residents. It typically covers the damage whether or not it was committed intentionally. Let’s face it, some residents are thoughtless and don’t take care of the owner’s property. Others are hostile and can be destructive. Whether the problem is negligence in not reporting damage and the need for repairs or its outright vandalism, the final result can include serious property damage and expensive repair bills.