5 Things Rental Property Owners MUST Know
Do you own a rental property or plan on purchasing one?
Rental properties can be a great source of extra income, but come with some risks that you may not realize. Here are 5 things that you need to know about owning a rental property.
Insurance is different for a rental property than with your principal residence.
You must arrange separate property insurance for any rental properties!
You should insist on your tenants having tenant insurance.
I recently reviewed a rental property policy for a client. Their broker didn’t discuss almost all of what I told them, including insisting that their tenants get tenant insurance. This adds to credibility of the tenant and protects both parties
Your policy should be reviewed every two to three years.
It is important that your broker or agent explains the coverage that you are receiving and CRITICAL that they regularly (at least every 2-3 years) call you for updates on the property. Unreported changes to the property can sometimes lead to denied claims.
If you live more than 100 km’s from the property, your insurance provider may require you to hire a Property Management company or similar option. This can also significantly impact your rates and coverage. Did your broker or agent mention this?
There is help.
If you’re concerned about anything you’ve read in this article, call me at 1-800-799-9040 for a HomeGuard Property Insurance Audit. I’ll conduct a thorough audit of your insurance policy (or policies) and provide you with simple report outlining the risks in your coverage that I find.
Larry Hoover is the President of HomeGuard, Canada’s premier provider of Property Insurance Audits and Professional Home Inventories. When reviewing a policy, he always finds something that you need to clarify or change.
Larry helps rental property owners stay protected and informed. Contact him today at 1-800-799-9040 to order the HomeGuard Property Insurance Audit.