Property Insurance 101 – Part 3
What happens when the property I own and rent out goes up in flames!
I’m covered right, but what about my income?
When you take out a property owner’s or landlord’s insurance, in addition to the physical structure and your liabilities, the third core cover is for loss of rent and additional expenses.
The standard cover for loss of rental income kicks in when there is physical damage to the premises which makes it uninhabitable and #becauseaccidentshappen to nice people all the time, depending on the severity of the damage and the estimated length of the repairs, the policy will either pay loss of rental income if the tenant goes elsewhere or in the case of short disruptions, the cost of alternative accommodation for the tenant, whilst the repairs are completed.
Rent guarantee cover can also be purchased which continues to pay the rent if for some reason the tenant gets into arrears and can’t or won’t pay and covers the time it takes to evict them, normally to maximum of 12 months. Generally, the first month is not covered.
This works hand in hand with legal expenses cover, and is generally an option which is not normally included and costs more to insure, but more of that tomorrow.
Have a great day
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