For home-owners in Canada, who desire to lease/rent their property, it is essential to have landlord insurance provided they would like to be covered by all probable contingencies. It may be noted that common home insurances do not include several things that are likely to take place when a home-owner is contending with a tenant or renter. On most occasions, you will find that everything is functioning well, however, when they do not, the landlord insurance policy will not only protect you, but also help you to remain calm and in peace.
The two major hazards faced by landlords renting out their property include defaulting rental fee and deliberate or spiteful harm to the property by the renter. Generally, the ordinary home insurance policies, which include home building as well as contents, do not cover the above mentioned risks faced by the landlords.
The landlord insurance policy actually covers a number of distinctive characteristics that are different from the common home buildings and contents insurance policies. Some of the typical attributes of the landlord insurance policy are discussed in brief below:
First and foremost, the landlord insurance policy protects the home-owner from all types of intentional or malevolent damages done to the property by the tenant or his/ her guests. The landlord insurance policy also covers the home-owners from any type of stealing of the property by the renter or his/ her guest. It also protects the home-owners from all common liabilities, counting any claim or assertion made against them by the renter. Furthermore, such a policy also provides the home-owner with facility to reclaim all legal expenditures made by him/ her owing to initiating any legal action that they might have taken against the tenant. Last, but not the least important, the landlord insurance policy also guarantees the home-owner of the property's rental fee in case there is a loss of income from rental provided the renter fails to reimburse the rent on the time agreed mutually.
However, it needs to be noted that for the home-owners in Canada, the landlord insurance police is not constant all the time. It is possible that the insurance policies would change significantly from one landlord to another, conditional on what is essential. For instance, if a home-owner is leasing or renting a completely furnished property, it is likely that the home-owner might acquire a landlord insurance policy that protects him/ her from damage and theft of all the contents of the property too. In this case, the home-owner would not be requiring another independent insurance policy for the content of the property.
In addition, there are also a number of landlord insurance policies which are intended to be obtained in the form of an added level of protection to a common home and contents insurance policy. In case a home-owner is leasing/renting a property that is not furnished, it is generally feasible to take out a landlord insurance policy which only includes the protection of the building as well as its fittings and fixtures. In this case, the landlord has nothing to do with the furniture or other things in the building and the tenant will be accountable for the insurance of any personal belonging or furniture that he/ she may bring into the rented property.
Generally speaking, it is a fact that the more one minimizes the risks with landlord insurance policy; eventually it is possible that it would return to worry him/ her all the more. In effect, having an emergency cover is an excellent way to handle things in exigencies. Presume the situation when an electrical fire occurs in your property or a water pipe ruptures in the building. In this case, it is likely that the renter would desire to have things restored at the earliest possible time. Thus, you will have to hire electricians, plumber and so on to rectify the damage each time it occurs. Such a situation will not only be very ineffective, but also not please your tenant.
Then again, if you include an all-inclusive emergency insurance cover in your landlord insurance policy, it is the responsibility to act and act really fast during any emergency. In fact, all liabilities would be on the insurance company whenever an emergency situation, as mentioned above, might occur. The insurance company will ensure that all repairs as well as replacements are done fast and competently. Moreover, in the long run, it will also cost you much less than if you had undertaken the tasks yourself. To top it all, your renter too would have a more pleasant experience.
All said and done, here is a word of caution for all home-owners wanting to rent out their property, either furnished or non-furnished. It is advisable that you keep some time aside to contemplate what you precisely require the insurance policy to cover. Think about all possible occurrences, and if you can you should also seek advice from experts. Generally speaking, the more complete or thorough your landlord insurance policy would be, you will face lesser problems with your property and its contents as well as your tenant, which you might encounter sooner or later.