All Landlord Rental Property Insurance: August 2009

Thursday, August 20, 2009

Update August 20 -2009 All About Landlords Rental Property Insurance Information By Insurance Experts

Landlords insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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Rental Property Insurance
By Josh Riverside

Most landlords have insurance on the property they rent, but the people who are renting can and probably should have renter's insurance to protect their property. This type of insurance covers items that are inside a rented property. In simple terms, while the landlord may have insurance for damages to his building, he or she probably does not have coverage for the valuables you have in your rental unit. In the event something happened to the landlord's building and you were displaced for a time, the renter's insurance would also pay for your stay. This type of insurance is also very handy for tenant liability problems. If the tenant is supposed to maintain the property but does not and someone is injured on the premises, it is the tenant and not the landlord who may be liable for this problem. If the renter had insurance, the claim would be covered as long as the tenant is the one responsible for maintaining the area.

If the apartment or home you are renting is in a high crime area, it is especially important to have renter's insurance. It will cover all personal items that are stolen from the property. If there have been repeated break-ins in the area, you may have a problem getting insurance, so make sure you check that out before you move into a rental space in a high crime area.

Renter's insurance is like homeowners insurance. You pay a monthly or yearly premium, as well as a deductible. The higher the deductible, usually the lower the monthly payments.

Property Insurance provides detailed information on Property Insurance, Property And Casualty Insurance, Rental Property Insurance, Commercial Property Insurance and more. Property Insurance is affiliated with Home Renters Insurance.

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Investing in Rental Property For Beginners
By Shawn B Platinum Quality Author

The procedure of investing in rental property as beginners can be thrilling; however, before you get too energized it is imperative to run some groundwork numbers to make sure you know precisely what you are facing to make sure a winning investment.

First, you will want to carefully inspect potential rental income. If the home has already served as a rental property, you will require to take the time to discover how much the property has rented for before and then investigate to decide whether that amount is on the mark or not. In some cases, properties may have rented for lesser than they should have whilst in other cases a property may be over-rented. Look at equivalent properties in the neighborhood to make sure you know whether the property in question is on mark; otherwise you may find that the quantity you think you will be getting in rental income is unlikely.

Mortgage interest is an additional area that should be thought-out carefully. Make certain you identify and comprehend the current interest rates as well as the details of your precise loan since mortgage interest is the major cost you will come across when purchasing investment property. First, recognize that homes and duplexes are inclined to have loan structures that are alike to any mortgage loan. With a bigger property; however, such as a triplex; rates are inclined to be higher. If you are looking at commercial land with even more units; the matter of terms and rates is entirely different. Normally, the more money you are able to put down on the acquisition of the property, the lesser amount of interest you will have to pay.

Taxes are an additional issue. Numerous people utilize the taxes from the year during which the property was purchased and think they can use these numbers to guess everyday expenditures. This is not always the case as taxes do not stay the same; they characteristically alter every year. More often than not, taxes rise after a property is purchased. This is particularly accurate if the property was formerly owner occupied. So, it is normally an excellent idea to just presume that the taxes will increase on the property subsequent to you purchasing it.

A part which many people fall short to take into contemplation is the expenditure of the property being empty. As you would surely hope that your property would stay rented all the time, this basically is not reasonable. There will most likely be times when your property will be vacant. In general, you should believe that your property will include on average a 10% vacancy rate.

The expenditure of occupant turnover should also be taken into deliberation. This is often a big shock to many landlords who take for granted they will lease out their properties and the occupants will stay in the property for a number of years. Even more of a revelation is how expensive it is to sort out the property to rent out yet again. Just a few of the costs to take in are not only advertising for a new renter but as well repainting, clean-up, etc. If damage was done to the property, the full amount of restoration may not be wholly covered by the security deposit charged.

Of course, the price of insurance ought to also be taken into full deliberation. Bear in mind that the insurance for rental properties is typically higher than a proprietor occupied property. Make sure you acquire a quote rather than just using the insurance cost for your own home as an estimating guide. In addition, make sure you take into deliberation not only property insurance but also liability insurance as well.

Utility costs are an additional area that are often under-projected. If the property has previously served as a rental property make certain you find out precisely what the proprietor pays for and what the tenants pay for. You must also make sure to discover whether you will be accountable for additional costs such as garbage collection.

Lastly, take into deliberation the costs of property management if you will not be running the property on your own.

Get weekly tips on buying rental property at cosmeticallydistressed.com

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Wednesday, August 5, 2009

All About Landlords Rental Property Insurance Information By Insurance Experts

How To Choose the Right Home Insurance for Owners, Renters, and Landlords
By Marilyn Katz Platinum Quality Author

Do You Know What Type of Home Property Insurance to Buy?
Homeowners, Renters, and Landlords all need home property and liability insurance, but their needs are very different. Home insurance needs also may differ, depending upon where you live. A condo owner will have different needs than a surburban home dweller.
Homeowners Insurance: Most people think of buying insurance for a home they own and live in. This type of insurance will cover your building, and the property inside of that building. It will also provide liability coverage in case somebody is injured on your property and it is deemed your fault. Even if you are not at fault, the insurance should help pay for a lawyer to defend you if somebody brings a suit.
Renters Insurance: If you rent an apartment or house, you probably only need to insure your personal property. The building should be covered by the landlord. Your policy should also cover liability insurance in case somebody is injured in your dwelling, and may also have a provision to provide you with a place to live in the case the home is made unlivable by something covered under the policy.
Landlord Insurance: If you own a home that you rent to tenants, you probably just need to cover the building. You should also have some liability coverage, but you should encourage your tenants to purchase renters insurance.
Condo Insurance Even though you own your condominium, the association in your building may take care of insuring the property. Your insurance policy will probably be similar to a renters insurance policy, rather than a typical homeowners insurance policy.
This may seem complicated, but it is important to choose the right type of home insurance policy. It will save you money in the long run. You won't be paying for coverage you don't need. You also won't want to have a loss, and then find out later that it was not covered under your policy.
The important thing is to analyze your needs, do some insurance shopping, and then talk to an experienced insurance agent if you need to. Enjoy your home, and feel secure in knowing that you have protection if something goes wrong.

M. Katz runs 247QuoteUS.com so you can compare insurance online and find home insurance information, quotes, and agents online.

Article Source: http://EzineArticles.com/?expert=Marilyn_Katz

Landlord's Insurance - What is The Usual Standard Coverage?
By Nathan De Bond

The whole point of a Landlords Insurance is that you can rent a property out and be confident that despite the fact that you are nowhere near the property and it is effectively in the hands of tenants that you can still guard against most things that could happen to the property and/or any contents that you may choose to leave in the property when you rent it out.

The main thing with any property that is rented out is that the main perils are covered to stop any damage to the building really hurting you. With Landlord's Insurance things that are covered as standard are usually; Fire, lightning, Earthquake, Explosion, Storm, Flood, Weight of Snow, Escape of Water, Escape of Oil, Theft or Attempted Theft, Malicious Damage or Vandalism, Impact by Aircraft, Impact by Vehicles or Animals and Subsidence.

Most of the things above seem straight forward but there are certain conditions within the policy that must be noted. In the case of Theft or Attempted Theft a forcible entry or exit condition usually applies which means that they have to have had to break in and if the tenants just left the door open then this wouldn't be covered. This effectively means that the tenants do have to do something on their part as well by remembering to lock up and make sure that the house is secure at all times.

Impact by animals is also another one that is sometimes misunderstood as it doesn't usually cover any pets, therefore it would only cover animals that were from outside the home, this is done so that things like a large family dog knocking down a small wall in the garden cannot be claimed for, however if the wall was knocked down by a rhino from the local zoo that had escaped (god forbid) then you can claim and get the damage undone.

The last of these which is a bit more in depth is the subject of Malicious Damage and Vandalism. Whilst most insurers will cover this under a Landlords policy they will not cover it if any damage is done by the tenant themselves, it is seen that Malicious Damage by the Tenant is a far greater risk as they are always at the property and anyone can lose their temper. There are insurers out there though that will cover rented properties from any cases where the tenants may maliciously damage the property, although some may put a claim limit on there of £5,000 others will happily cover that peril up to your requested Building Sum Insured.

I hope that this clears things up for people that are looking to find out more about Landlords Insurance and what exactly you can get cover for when you are renting out a property to tenants.

This Landlords Insurance website will provide you with any further information you may require.

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Why Would I Need Landlord Insurance?
By Dez Broatch

Having a landlord's insurance policy is a prerequisite for all landlords. The policy will protect you if for unforeseeable circumstances the property is not fit for rent. Landlord's insurance will go a long way in helping you with the cost of repair to the property if unexpected damages should occur. A burst water main, fire or even tenant misuse could render the property unsuitable to live in and so a loss of rent would be inevitable, but a landlord's insurance policy would cover this while repairs were being carried out on the property.

A policy should always be scrupulously examined for peace of mind. You need to know what is covered and what is not. For example the policy may only cover you for damage to the interior of the property and not the exterior.

Landlords are repeatedly advised to prudently consider different options before purchasing an insurance policy. A comprehensive insurance policy can provide coverage for all types of conditions except those respectively excluded. A landlord insurance policy will predominantly offer two means through which property losses can be resolved: replacement value and cash value. Landlords will commonly pay a lower dividend for an actual cash value agreement after all they will acquire recompense after the loss of value is deducted from the current market price of the property.

With an alternative value settlement, compensation will cover the fundamental costs of replacing the damaged property. The property, nevertheless, will have to be reinstated to qualify for this settlement. If it is not replaced, the settlement, by defect, will likely to be actual cash value. Landlord's insurance will only cover the property and the legality of the landlord. Damages to personal possessions or another person's goods within a tenant's residence become the liability of the tenant. Taking out a renters' insurance policy will grant liability coverage and, in some cases, it could also cover appropriate legal costs.

Landlord Insurance is available in the UK from Simple Landlords Insurance

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So You Want To Be A Landlord? Investing In Rental Properties
By Kim Key

If you are thinking of investing in the housing market, now is definitely the time. The recent drop in home prices brings the dream of becoming a landlord (or landlady) within reach. If you are looking to get rich quick, this may not be your vehicle, but if you want a dependable stream of monthly income today, as well as a safety net as you get closer to retirement, consider buying an investment property.

Here are some things you will want to consider as you search for the perfect house to rent.

1. Location.

First, and most importantly, find a realtor you trust. He or she can give you information on the location of the hottest deals. Right now, foreclosures are at an all time high, and houses are selling for a fraction of their assessed value.

Tip:

Look for a solid, middle-class neighborhood; a home too large or too small will be harder to rent. Ideally, it will be located near a school. Homes near schools are not only convenient, but they also hold their value well. If you are set on a house in foreclosure, look to the outer fringes of the foreclosure area, where most people can still afford the payments.

2. Down payment.

Unfortunately, due to the recent mortgage fiasco, it is difficult, if not impossible, to get a home for no money down. For an investment loan, look for an initial outlay of 20%.

Tip:

If it is feasible, consider moving to the new home and renting your residence for a few years. An owner-occupied loan saves money in all areas of the transaction. If you live in the house yourself for at least two years, the profit should be tax-exempt when you finally sell it.

3. Interest rate.

This will vary considerably according to your credit rating. A low credit rating will not prevent you from getting a loan, but you will pay a higher interest rate. If you choose not to live in the new house, plan to pay a point or two higher than a traditional home loan.

4. Condition of the property.

If this is your first investment, you may wish to find a home close to move-in condition. Any home will require a thorough wipe down, carpet cleaning, and a change of locks. Become familiar with your state's landlord/tenant laws so you know exactly what maintenance is required before the home can be rented.

Tip:

Listen to your instincts when viewing the home. If you wouldn't want to live there, no one else will, either. Unless you have building and remodeling skills, or have a trusted handyman on retainer, a "fixer-upper" can become a giant headache.

5. Maintenance.

As the landlord, you will be required to maintain the structure and any working appliances. This includes making sure there are no leaks in the foundation or holes in the roof. A new furnace or heat pump will cost about $5000, so you will want to check it seasonally.

Tip:

A home warranty will pay for itself with the first use. For about $300, you can have peace of mind that if a major appliance needs repair or replacement, you only have to pay the deductible

6. Lease.

State laws vary as to what must be included in a lease, but your realtor can give you the specifics. A detailed lease should list the duties and responsibilities of each party; it is invaluable in protecting both you and the renter. Make sure the renter is accountable for minor upkeep such as moving the lawn, cleaning the gutter, etc.

7. Insurance:

Insurance rates vary, but insurance on a rental property is less expensive than your residence. This is because you will be getting a landlord's policy vs. a homeowner's policy; the possessions of the occupant are not covered. Don't skimp in this area--make sure the coverage is enough to rebuild the home should an accident occur, and check the policy each year, as construction rates can rise quickly.

Tip:

Consider a clause requiring the occupant to purchase renter's insurance. For about $20 per month, they will be reimbursed for their belongings should something happen to the home. It only takes one fire or flood to destroy personal possessions accumulated over a lifetime, and as the owner, you are not responsible for their loss. Prevention, therefore, is key.

Sound like a lot of work? After the initial fear of giving up a large sum for the down payment and closing costs, the renting experience is easy. Once in a while you will get a call in the middle of the night, but each month you will get a check in the mail that not only covers the mortgage, but includes a few hundred dollars to stow away for maintenance. In as little as a year, you should have five to ten thousand dollars for improvements and unforeseen expenses. Once you have the safety net, you can begin paying yourself back.

The best part? Depending on the prevailing rent and your initial outlay, you can own the home outright in much less than the standard thirty years, while someone else pays the rent. Or, you can sell it after a few years and keep the profit.

Being a landlord is not the fastest way to make money, but it is an excellent way to build equity you can tap into for emergencies, a new car, or retirement. Instead of working for someone else, consider investing in the rental market. Common sense and a good realtor are all you need to make it work for you.

This article has been submitted in affiliation with http://www.StockBee.Com/ which is a free online stock ticker quiz.

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All About Landlords Rental Property Insurance Information By Insurance Experts

Your Landlord Guide to Important Rental Property Terms and Words
By Teo Zhenjie Platinum Quality Author

Are you looking for a landlord guide to unravel the big words and confusing terms used by rental property owners? Our plain English landlord guide will explain every common word and crucial term that you will need to know.

1031 Exchange - Refers to the section 1031 of the U.S. revenue code. What makes it important is that it allows you to avoid paying capital gains taxes when selling your rental property if you use the money to buy another like-kind property.

Capital Gains Tax - The taxes you have to pay if you sell your rental property for a profit. Some countries do not require landlords to pay capital gains taxes.

Eviction - The legal process that rental property owners use to remove nightmare tenants who don't pay rent or break the terms of their rental agreement. As this can be a costly and messy process, it's highly recommended that you look for a landlord guide to do it property.

Fixed Term Tenancy - A popular type of rental agreement where there is a fixed starting and ending date.

Landlord Liability Insurance - Insurance that protects you in case you are being sued by your tenant for injury or losses. This insurance will cover your legal costs and any claims that are made by your tenant.

Notice to Quit - This is a written note that is commonly given to tenants in advance to end a periodic tenancy. Before you can file an eviction lawsuit, you will also have to give your tenant a written notice to quit as a final warning.

Occupant - An occupant is someone who is legally allowed to stay on your rental property as stated in your lease agreement. He is different from a tenant in that he is not responsible for paying you rent. An example of an occupant will be your tenant's children.

Periodic Tenancy - Another common type of lease that is renewed from one time period to another instead of having a fixed end date. A periodic tenancy can be week to week, month to month or year to year.

Section 8 Program - Also known as a housing choice voucher program. This is a U.S. government housing program that helps people with low income by paying 60 to 70% of their rent. As there are many rules regarding this program, read your section 8 landlord guide before accepting a section 8 tenant.

Squatter - Someone who is illegally living on your rental property. This usually happens when your tenant invites someone to stay over for a long time without your permission.

Subtenant - When your tenant re-rents your rental property to someone else, that person is known as your subtenant. In most cases, you will have little control over your subtenant so it is recommended that you do not allow them.

Surrender of Tenancy - When both the landlord and tenant agree to mutually end their rental agreement, the process is called a surrender of tenancy.

Tenancy at Sufferance - If the time period for your lease is over and the tenant continues living on your rental property without your permission, he will be known as a tenant at sufferance. In most cases, he has to continue paying you rent and you can file an eviction lawsuit to remove him.

Tenancy at Will - This is a more informal type of lease where there is no proper written rental agreement. It is commonly a verbal arrangement preferred by landlords who need temporary tenants.

Tenancy for Years - This is another name for a fixed term tenancy. For the full explanation, look for "fixed term tenancy" above.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com - Visit his website today for your step-by-step landlord guide, free resources and forms.

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Tax Deduction - Essential to Landlord's Success
By Eric J. Slarkowski Platinum Quality Author

While the amount may not seem significant to some, every property owner knows that the tax deduction allowed for rental property can make a significant difference on the bottom line. Those who own rental property should be sure to take advantage of the tax benefits of being a landlord.

Some of the common expenses that can be deducted when figuring income taxes are:

• Mortgage interest. Payments made to a lending institution for real estate loans usually include principal (part of the amount borrowed) and interest (charges for loaning the money). Rental-property owners can borrow to purchase property or to improve property. In addition, interest on credit card payments may be deductible if the purchase was strictly for the rental property. Rental-property owners should know, from the start, that interest expense must be at the top of the deductible list.

• Owners of rental property should take care to reap the benefits of depreciation of property. In most cases, this deduction is available after the first year of ownership and generally continues for 27 years. Property owners should consult with a tax adviser to make sure that depreciation is handled correctly.

• Rental-property owners know that keeping up with repairs is one of the major tasks of being a landlord. But repair costs are deductible for the year the costs are incurred. For example, if it is necessary to put new tile on the kitchen floor of a rental property, refinish the walls with new plaster or drywall, or replace old/broken windows, the labor and materials cost is deductible. These repairs must be necessary for the daily operation of the property and should not be improvements made to enhance value (capital improvements). Again, it would be wise to consult with a tax expert to make sure this deduction is taken properly.

• Some rental-property owners forget about the travel expense of owning property and miss out on what can be a significant deduction. If the owner must travel to the rental property to meet with tenants or to make repairs, for example, the travel expense may be deductible. Travel expenses incurred for visits to plumbers, electricians and contractors can also be included in tax deduction calculations. If the visit to rental property involves travelling to another city, it may be possible to deduct airfares, hotel bills and some other costs.

• Many rental-property owners conduct their business from their home, which allows them to deduct a portion of the home's square footage for business purposes. Other expenses associated with this home office may be deductible as well (separate phone, office equipment etc.).

Property owners who work with a knowledgeable tax adviser also deduct losses such as flooding and fire damage. The amount allowed for deduction can depend on the insurance coverage terms, and the loss may be figured as partial or full. This brings up another key item in a successful rental-property business - insurance. Landlords are allowed to deduct insurance costs (premiums) for their rental property. Types of insurance include: landlord liability, theft, fire, flood etc.

Property owners should also keep track of fees paid in connection with the rental-property business. This category can include fees paid to real estate advisers, property management businesses, attorneys, accountants etc. Those who own rental property should be aware that some expenses are not deductible under current tax codes. If an apartment remains vacant, for example, the property owner cannot deduct loss of income. New appliances and room additions are not generally deductible. The advice of a good tax expert is essential to a successful rental-property business.

Eric Slarkowski's publications can be encountered on a large number of web sites with information about cnc wood router. You can discover his writings on cnc router desktop at different sources for cnc router desktop knowledge.

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Landlord's Insurance - What is The Usual Standard Coverage?
By Nathan De Bond

I hope that this clears things up for people that are looking to find out more about Landlords Insurance and what exactly you can get cover for when you are renting out a property to tenants.

This Landlords Insurance website will provide you with any further information you may require.

Article Source: http://EzineArticles.com/?expert=Nathan_De_Bond

Texas Landlord Home Insurance Information
By Glenn Lamb Platinum Quality Author

Texas landlord home insurance is different from a standard homeowner's policy in several ways. Because of this a landlord will usually get a specialized type of homeowners insurance. This is sometimes called a dwelling policy.

Personal property (contents) is not usually standard with a landlord home policy. There is often an option to get this at extra cost. That is a good idea if the home is furnished with appliances and or furniture. You will probably be able to select the dollar amount of this coverage that you want. Personal property theft is normally excluded from coverage.

Personal liability and medical payments to others coverage will probably by optional with a landlord’s home insurance policy. There will probably be an option to have liability coverage added with extra cost. This is usually inexpensive and I recommend getting liability coverage.

Texas has standardized packages of coverage and most landlords get a Texas Dwelling Policy (TDP1, TDP2, or TDP3 package.) TDP1 is the least expensive and covers basic risks. TDP2 covers some additional perils including rupture or bursting of water pipes, fall of trees, glass breakage, and collapse of building. TDP3 includes TDP2 plus trees, shrubs, plants, special form (broader coverage) on the building, and additional living expenses. (Please note that your actual policy may vary from my description and you should ask your agent to explain all details of any policy that you get)

In many cases I suggest the TDP3 policy because it has better coverage for only slightly more than a TDP1 plan. Then ask about your options to upgrade by adding things like some content coverage, personal liability, and medical payments to others coverage.

Your agent should discuss all available discounts with you. This can include things like an alarm system, newer home, updated electrical or plumbing, claims free, good credit, and senior citizen discounts.

Flood coverage will not be included with your policy. If you are in a high risk area this is essential. If the home is not at high risk the cost will be very low. I usually suggest getting at least some flood coverage.

Another consideration for landlords is a renter’s insurance package for the tenants. This is important for them and you. You want their property to be covered to reduce the possibility of a claim against you if they have a loss. For example, if there is a fire and they have $50,000 in property destroyed, they might claim it was your fault because the home had an issue with the electrical system. You could also have exposure for a liability claim in the event of an injury. I suggest requiring the tennant to have a high level of liability coverage. A renter’s package policy is usually inexpensive and is typically in the $100 to $300 per year range. Consider making renters insurance a requirement in your lease. You may want to require proof of a 1 year paid-up policy at move in time. Ask your agent to advise you about how much coverage is sufficient.

Lamb Insurance Agency, (Farmers Insurance) Auto, Home, Life, and Business Insurance for Texas - http://Farmers Insurance Houston

or Homeowners Insurance Houston

If you have a rental property in Texas you can get more information at my Houston landlord insurance website. Or call my office at 281-537-2700.

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All About Landlords Rental Property Insurance Information By Insurance Experts

Letting Property - A New Landlord's Questions and Answers
By Chris Horne Platinum Quality Author

1. I want to let a property do I need a tenancy agreement?

No, there is nothing in law to say you have to have a tenancy agreement. However, if a dispute arises then it could be very difficult to prove who was right and who was in the wrong. I would always recommend that a landlord uses a solicitor drafted Assured Shorthold Tenancy.

Things to look out for in a tenancy agreement:

• Protects your rights as a landlord.
• Produced by a legal expert.
• Suitable for multi lets.
• Suitable for use by a company.
• Does not include clauses which were recently deemed as 'unfair' by the Office of Fair Trading.
• Allows the landlord to charge for the cost of collecting late rent payments.

2. Can I increase the rent?

A landlord can increase the rent at anytime providing the tenant agrees. If they don't, a landlord will have to wait to the end of the fixed term of the tenancy, or, where it's a periodic tenancy. then the landlord will have to follow the statutory procedures if the tenant refuses to agree to the rent increase.

3. I want to get rid of my tenant because they've stopped paying the rent, surely I can just kick them out?

No. Don't even think about it. A tenancy gives your tenant certain rights to stay in a landlords property, even if they do many things that the landlord thinks are wrong : like not paying rent, being anti-social, failing to look after the rental property. If a landlord tries to evict them without going through the right procedures a landlord could end up with a big fine or even a prison sentence. Even phoning them at work could be considered to be harassment of the tenant. Landlords need to tread carefully.

4. I want to let my property but do I need a letting agent?

No. Landlords can do it all themselves and save a small fortune. A letting agent will look to charge a landlord as much as 15% of the rent for letting and managing the rental property. If a landlord is able to let the rental property themselves this will save a great deal of management costs.

5. I want to get my property back. How do I go about it?

This requires a landlord to seek possession. How a landlord gets possession will depend on the specific circumstances, and getting things wrong can be costly. Some landlords seek legal advice Or some landlords choose to do it themself, but need to follow the possession instructions carefully.

6. Do I need to take a deposit?

No, landlords don't need to take a rental deposit. In fact many landlords letting to students or low value rentals don't bother taking a rental deposit. If a landlord does, they will need to use one of the Governments approved tenancy deposit schemes or risk a big fine.

7. Do I have to declare my rental income to the taxman?

Yes. Rental income is assessed under the land and property section of a landlords self- assessment return. There are a lot of expenses that a landlord can set off against their rental income, some landlords might even make a rental loss ( especially in the current harsh economic climate ). Losses can be carried forward and set off against future rental profits.

8. The tenancy is coming to an end what do I do?

If a landlord has set a fixed term tenancy, say a 6 month tenancy, and want to carry on with the same tenant, the landlord has got a number of choices. Get the tenant to sign and complete a new tenancy agreement. Amend the terms of the existing tenancy including the dates of the tenancy and get the tenant to sign and agree the variation. Allow the fixed tenancy to lapse and it will then run on as a statutory periodic tenancy in which case the tenancy will just carry on with the same from rental period to rental period until the landlord or the tenant bring it to an end.

9. Do I need a specialist landlord insurance policy?

Yes. Normal household insurance won't cover your property if you start renting it out. This is because household policies do not cover buildings, contents or the landlord for third party liabilities while the buy-to-let property is being let out, read more on landlord insurance cover options.

10. What's an EPC? Do I need one?

An EPC or Energy Performance Certificate has been introduced by the Government to measure the energy efficiency of a rental property. Since the 1st of October 2008, any property that is being marketed for rent needs to have one. Find out more about the EPC.

Chris writes for propertyhawk.co.uk a site dedicated to UK landlords and free tenancy agreements. Including free online property management software.

Article Source: http://EzineArticles.com/?expert=Chris_Horne

Does Owning Rental Property Help You on Your Taxes?
By Rocco Beatrice Platinum Quality Author

The answer to this question will depend on a variety of factors. The determining factors are included if you have a mortgage or own the rental property outright. In order to receive any tax breaks on property, you will need to itemize your taxes. This task should be dedicated to a CPA so it is assured that everything is done correctly and you will receive the tax benefits.

On the IRS website, you can learn how rental income should be reported when you file your taxes. There are some important things to take into consideration when filing. Always remember that any rent you receive for tenants is considered to be a source of income. If any improvements are made to the property by the tenant without charging you for those improvements, the value of the improvements is also considered to be income. If you have taken a security deposit that will not be returned, this is income.

It is very important for landlords to keep meticulous records of any and all transactions that are associated with the rental property. Even if the additional income hurts your tax return, the IRS demands complete accuracy when you report any income that resulted from a rental property.

While this may all sound overwhelming, there is a positive side. Rental properties are considered tax-deductible. This means that anything you do to maintain the rental property that incurs an expense, can be deducted from your taxes. You must have all documentation to support the claims of these expenses. If you file for a deduction, you have to support the claim with concrete proof.

It is important to know what expenses are eligible for a deduction. Basically, as long as the expenses are related to the upkeep of the property or the administrative tasks associated with being a landlord, you can submit the expenses and claim them as a deduction. This can include any repair costs, interest that you pay for the mortgage and equity loans and the cost of advertising to find new tenants.

This does not mean that every single expense will be deducted. If you spend money that exceeds the amount of income you receive from rent, you will find that many of your expenses will not be deducted. If you have questions as to what can be deducted, it is best to consult with a CPA or contact the IRS. There is no rule that governs rental properties because every situation, and every landlord, is different.

Owning rental property can help on your taxes in other ways as well. In addition to the standard deductions, there may be other ways to save on taxes. In some cases, a landlord will obtain a home equity loan on the rental property. They will then use the proceeds to invest in insurance products that are non-taxable. This is legal and can be claimed on your taxes. You will need a qualified CPA to help with filing your taxes to make sure that your claimed deductions qualify. Rental property is a great source of extra income and it can save a lot on your yearly taxes.

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Do You Have Adequate Landlord Protection Insurance?
By Darren Cruise

Obtaining suitable landlord insurance is one aspect of property investing that you can't afford to overlook. Malicious damage by a tenant, loss of rental income & legal liabilities are just some of the hazards you will face as a property investor and are reasons why many investors hand the responsibility for running their investment over to a property manager.

However, obtaining sufficient landlord protection insurance is one responsibility that you should take care of yourself - even if you do end up going with a policy recommended by your property manager (more on this a little later).

When assessing the fine print of an insurance policy, ensure it does not contain any clauses that will negatively impact you from being covered for all the common tenancy problems. Often property investors take out a building policy that has been loosely marketed as a landlord product and assume that they have adequate cover.

The fine print in these policies frequently reveals clauses excluding events such as malicious damage by a tenant, accidental damage by a tenant, legal liability & cover for the loss of rental income - all essential components that you require coverage for.

Landlord insurance requires special inclusions and is only offered by a limited number of insurers. Before signing up for an insurance policy ensure that it covers the following risk factors:

Malicious Damage/Accidental Damage - This covers damage caused by a tenant, which does not occur as a result of normal wear & tear. This includes holes in walls, smashed doors & intentional damage to floor coverings as well as unintentional damage cause by honest tenants.
Rent Default & Theft - When a tenant owes you back rent, skips town & steals some items a properly structured landlord protection insurance policy will cover these events. However, there will be a maximum amount that can be paid out by the policy, normally a certain period of weeks rent.
Loss of rental income - This will cover you in instances where malicious damage/accidental damage to your property has resulted in a loss of rental income whilst repairs are carried out. Loss of rental income can also occur from other events such as absconding tenants, the tenant defaulting on payments, death of a sole tenant etc.
Legal liability - Be sure that your insurance policy covers you for public liability. This will protect you for any event whereby a tenant (or any of their visitors) suffers an injury and subsequently sues you for damages.

Competent property managers are a good starting point in sourcing suitable insurance as it is in their best interests for their clients to be adequately covered. The reason for this is that the property manager is at risk of losing income if their uninsured client ends up losing their assets in the event of a tenant making a claim against a them.

Ensure you compare as many policies and insurance premiums as you can before making a decision on the best landlord insurance policy for your particular circumstances.

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All About Landlord Home Insurance
By Nicholas Raflesia Platinum Quality Author

Do you really know about home insurance? Especially do you know if you need a homeowner's policy? A family that lives in a home that they possess will have different coverage needs then a family who rents a home. Likewise, landlords and people who possess condos may not need all of the coverage the people who reside and possess in stand alone houses do. You will obtain the best coverage at the most affordable cost if you understand what you have to cover, and what things are already covered by another policy.

Any landlord who possesses a small to a large property owner will need a landlord home insurance to protect his assets. As you have a good quantity of equity attached to your property and require a certain quantity of revenue from your property, you would want a good appreciation for your property.

Landlord insurance protects your revenue any advantages from tenant's rent. You as a landlord are more concerned on insuring your own contents rather than tenant's contents. It is the job of the tenants to insure his content through a separate tenant insurance cover. It can be completed through normal process of home insurance policy. With this home insurance, a landlord can insure all contents that he possesses in the property.

Landlord home insurance policy is similar to any other homeowner's insurance policy. Conditions of insurance for properties are subjected to all the different kinds of landlords. If you are a landlord, you should undeniably encourage your tenants to purchase home contents insurance for them.

As a landlord, it is significant you obtain a comprehensive cover deal that will look after the home structure, land area and home content. Please take you time to research the fine prints in the policy you are purchasing. This is very significant if you want to have peace of mind during the active period of your landlord insurance contract.

In actual fact, a number of landlords go as far as lowering the rent slightly just to encourage their renters to take on home contents insurance.

If you want to get some excellent resources on home insurance, please visit my site on All about Home Insurance or Landlord Home Insurance

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All About Landlords Rental Property Insurance Information By Insurance Experts

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Landlord's Protection to His Let Out Property - Tenanted Property Insurance!
By Kirthy S Platinum Quality Author

A landlord may find landlord building insurance quite essential without realizing the need for tenanted property insurance. There is a difference between the two. A rented insurance will cover your assets or contents in the rental unit. On the other hand, a building insurance covers your property externally and not for its content. Hence, there is a need for such insurance to safeguard the content in a rented unit. As a landlord, you should not overlook rent insurance of your property.

A tenant can also get a coverage under tenants content insurance. In case, a tenant damages the content of a landlord while he is residing in the rented house, the chances are the landlord will take the costs of repair from your deposit. In order to safeguard this deposit paid to the landlord, you can avail a tenant content insurance at a minimal price.

In some cases, a homeowner's insurance policy will not be comprehensive enough. It may not cover damage caused by natural catastrophe or damage to art or loss of or theft of jewelry over a certain amount. In such cases, you need an extra cover and rented insurance on property will help if your house is in high risk area for earthquakes, flood, fire or others.

Rented Insurance on Property is also known as let Insurance on Property or tenanted Insurance on Property. When a landlord does not reside in the vicinity of his property let out, he will be risking his property. As a tenant may damage his property and its structures. And it is essential to cover everything right from fixtures and fittings to loss of rent. Let Insurance on Property caters for residential as well as commercial let property, unlike other insurance which covers only residential property. This could comprise of holiday homes or unoccupied properties, student let outs, DSS and asylum seekers.

Let Insurance on Property is a comprehensive cover which covers landlord's buildings and/or contents insurance as well as holiday homes. A landlord would have invested a hefty some in his building and letting it out to a second party would be jeopardizing his investment and hence his investment requires protection, property owner uses his property as an extra source of income and that income needs protection. Such property insurance coverage is indispensable to any landlord planning to let out his property.

It is also observed that a UK holiday home insurance policies and other home policies cover, differ in two ways, firstly when the property is unoccupied and the other being valuables and personal possessions. This is however, not included in the holiday home insurance. Read the terms and conditions of any insurance policy and then opt for the right one.

Kirthy Shetty, Platinum author
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Low Cost Landlord Insurance - How to Slash Your Monthly Premiums
By Teo Zhenjie Platinum Quality Author

Do you need a low cost landlord insurance for your rental property? Then find out what are the easy and proven ways of slashing your insurance costs right now.

Reduce Your Insurance Costs by Picking the Right Tenants

Most insurance companies will be willing to offer you a low cost landlord insurance if your tenants are the type who stay home more often. The reason for this is very simple: When your tenants are at home, they will effectively lower the risk of any fire breakout or theft.

This will in turn reduce the costs of your home contents and fire safety insurance. Elderly tenants and housewives are generally considered the homely types by insurance companies.

Most insurance companies do not offer policies for certain types of tenants whether it's by their own choice or by law. People living on subsidised housing and students usually fall into this group.

If your tenants are working full time with stable incomes, most insurance companies will be more than happy to work with you. With a wider range of policies to choose, it's highly likely that you will find an insurance policy is cheaper and suits your landlord needs better.

Upgrade the Security and Fire Safety of Your Rental Property

By improving the security of your rental property, you will be protecting it against burglary and vandalism. The most effective and common way of achieving this is to install bolt locks and alarm systems. This is helpful in boosting your rental profits in 2 ways.

Firstly your insurance company will charge you less for your home contents insurance. This helps you cut down on your property expenses. Secondly a rental home with better security makes it more attractive to tenants as well. This means that you can not only ask for a higher rent but also have a wider pool of potential renters to choose from.

Another effective way of getting your hands on a low cost landlord insurance is to reduce the risk of fire outbreaks on your rental property by installing fire alarms and fire extinguishers. Lower risk of fires means you get to enjoy savings on your fire safety insurance.

Make Sure that Your Insured Building Sum is Stated Correctly

Many landlords tend to be overly careless when they are giving the value for their insured building sum.

If you want a low cost landlord insurance, one crucial fact you have to know is that your insured building sum is not equal to the market value of your property. Insured building sum is the cost of replacing your entire rental home in case it gets wiped out.

What this means is that your insured building sum will always be lower than the entire price tag of your rental property because it does not include the land where your house sits on. This difference can be huge especially if your rental property is in a prime location.

Overstating your insured building sum will only increase your monthly premiums unnecessarily because you are paying for coverage that you don't need.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com/ - To learn more important tips on low cost landlord insurance, visit his website today for step-by-step real estate guides, free resources and forms.

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Landlord Insurance - Don't Forget to Protect Yourself With a Business Owners Policy
By John Mazzara

It is always important that you work to protect yourself, whether you are a landlord that is renting out a home or whether you are the tenant who is renting from a landlord. You never know what can go wrong on both ends of the deal, so having rental insurance is definitely a must. Of course you'll find that there are particular options for renters when it comes to renters insurance and then there is special rental property insurance for landlords available as well. Although many people may think that a landlord should be insured, they often forget to realize that it is so important that they have insurance while they are renting as well. So, let's take a look at both landlord rental insurance and renters insurance for tenants.

Landlord Rental Insurance
Having your own insurance as a landlord is very important if you are going to rent out properties. It is important that you are well protected when you are involved in renting property and good insurance can help to keep you protected if you lose income, if there are legal disputes, and if something bad happens to your property. There are a variety of different options available and coverage for many different situations that is available. However, there are some basics that you'll always want to make sure are included in your policy. Here are the fundamentals of a policy for a rental insurance policy for landlords.

- Property Coverage - First of all, you'll find that property coverage is going to be important if you own rental property. When you go with landlord rental insurance, you'll want to take a look at your policy to see what kind of property coverage you have. You'll want to make sure that your insurance policy covers the rental building itself, any other structures that you have on the property, such as the shed or a garage, and your own personal property that may be stored on the rental property should be covered as well.

- Protection from Lawsuits - Another important thing that you need to look for when it comes to your rental insurance as a landlord is protection from lawsuits. When you are renting out property, this is a huge risk that you will face. If people get injured while they are on your rental property, they could try to sue you. For this reason, having good insurance that will protect you against these lawsuits is important and will definitely come in handy if you every deal with this type of a problem.

- Protection in Case of Loss of Rental Income - Loss of rents coverage is also very important if you are a landlord. If for some reason you end up not getting the income that you are supposed to from your tenants, you still have to come up with the money to pay the mortgage. This type of insurance helps you to make sure that you'll be insured in case you do lose your rental income.

Renters Insurance for Tenants
Of course renters face many risks when they are renting as well and renters insurance is definitely an important purchase. If disasters strike, you'll be at the same risk as someone that owns their own home. While the landlord probably has their own insurance, it is not going to protect all of the things that you own. For this reason it is so important that you have good renters insurance that will provide you with the coverage that you need for all your goods when you are renting. So, let's take a look at some of the things your insurance will cover.

- General Coverage - First of all, let's take a look at the general coverage that you'll get with renters insurance. Your personal property will be protected by your insurance in the case of several different types of perils. Some of these perils that are covered include hail and windstorms, aircraft and vehicle damage, volcanoes, lighting, fires, riots, falling objects, theft, vandalism, smoke, explosions, weight of snow, accidental cracking of water heaters and air conditioners, water damage from appliances, sprinkler systems, air conditioning, and plumbing, freezing of the plumbing, and electrical current damage. Of course it is important to realize that earthquakes and floods are not included. If you think that you may have a problem with either of them, then consider a separate policy.

- Taking Inventory of Belongings - When you are purchasing renters insurance, you'll want to take the time to take inventory of your belongings. This is important, since you'll want to be reimbursed if something happens. You can do this by keeping receipts, documenting with photos or videos, and writing down all the items and serial numbers of valuables that are in your home.

- Other Benefits - There are other benefits to going with rental insurance as a tenant as well. Often your policy will provide you with liability coverage if some falls and sues you. Also, if you have to move out because of a problem in the rental, often the insurance will cover the expenses of living somewhere else if you have to.

John Mazzara CFP CLU CHFC CEBS CMB MBA MS is an independent financial planner in the Twin Cities, MN. Officing out of Edina, Minnesota-John is centrally located within the 7 county metropolitan area. John owns three separate businesses-a licensed real estate broker associate selling Minnesota Real Estate since 1986-affiliated with RE/MAX Associates Plus http://www.selling.mn - an independent CFP-certified financial planner since 1989 with an independent Minnesota financial planning firm-Financial Planning Associates and the owner of a Minnesota mortgage broker firm-Venture Development Inc-specializing ins residential, commercial and investment mortgages http://www.ventureloanapp.com

John has a wealth of knowledge and experience that surpasses most other advisors. If you are looking for someone to help you in the areas of real estate sales/purchase, mortgages, or and/or financial planning and insurance you should call John for a free 1 hour consultation to see if he can meet your needs. 952-929-2577.

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Maximizing Deductions on Your Real Estate Rental Property
By Thomas Corley Platinum Quality Author

Do you own rental property that's been producing a marginal profit or a loss the past few years? Short of raising the rent again, you're fighting an uphill battle as your expenses continue to grow. But one way you can maximize your rental dollars is to squeeze every last tax deduction from your activities. A little extra diligence can boost your profits or turn red ink into black. Surprisingly, many landlords don't grab all the deductions they're entitled to. Following is a list of 10 key landlord deductions that you should be taking advantage of.

Top 10 deductions for landlords

1. Interest. It's usually the biggest deduction on the list, so don't forget it. You can deduct mortgage interest on loans to acquire or improve your rental property, plus other interest incurred for assets or services used in the rental activity.

2. Depreciation. Most likely, this is the second-biggest deduction. You must depreciate residential rental property over 27.5 years.

3. Local travel. Track your auto expenses related to the rental activity. This isn't limited to travel to and from the rental property. For instance, you can deduct trips to the hardware store or office-supply store. Use the standard mileage rate to figure your deduction. For 2007 the standard mileage allowance is 48.5 cents per mile.

4. Long-distance travel: If you're required to travel overnight for your rental activity, you can deduct your airfare, lodging and other related expenses (including 50 percent of the cost of meals). Also, you can mix in a little pleasure, as long as the primary purpose of the trip is related to rental activity.

5. Repairs. Write off the cost of "ordinary and necessary" repair costs in the year in which they're incurred. These include expenses for repainting, fixing gutters and leaks, plastering and replacing broken windows. Note: The cost of improvements, as opposed to repairs, must be capitalized and added to your basis.

6. Insurance. You can deduct insurance premiums for your rental property, including fire, theft and flood insurance and landlord liability insurance. If you have regular employees, you can also write off the cost of health insurance and workers' comp insurance costs.

7. Salaries and contractor fees. When you hire someone to work for your rental activity, you can deduct his or her wages as a business expense. Similarly, you can deduct fees paid to independent contractors-such as plumbers or landscapers-who provide services. You will be required to issue to any individual independent contractor a 1099 if you pay them $600 or more during the year. You may also be required to collect 7% in New Jersey withholding tax and remit that to the New Jersey Division of Taxation.

8. Professional fees. Generally, you can deduct the fees paid to professionals-attorneys, accountants, property management companies, investment advisors and the like-to the extent that the costs are attributable to your rental activity.

9. Home-office expenses. If you use a room at home for administrative tasks related to the rental activity-and the activity has no other principal place of business-you can deduct expenses attributable to a home office. Thus, you can deduct a percentage of regular home expenses (utilities, insurance, etc.) and the full amount of direct expenses, such as a separate telephone line. The use of the home office must be regular and exclusive.

10. Casualty losses. Finally, if your rental property is damaged by a sudden event, including vandalism or theft, you may be able to claim a casualty loss for the damage suffered (less insurance reimbursements).

Tom is a Certified Public Accountant, a Certified Financial Planner, CLTC (Certified Long-Term Care) and President of Cerefice & Company, the largest CPA firm in Rahway, New Jersey. Tom works with clients helping them manage their money, retirement planning, college savings, life insurance needs, IRAs and qualified plan rollovers with an eye towards maximizing tax benefits and minimizing taxes. Tom is founder of the Rich Habits Institute and author of "Rich Habits".

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All About Landlords Rental Property Insurance Information By Insurance Experts

Landlords and Property Owners have many options when it comes to the management of their property or properties. From sorting everything on their own to employing the services of a property management company. Here are therefore some tips for Landlords and Property Owners to make sure their assets are protected:

What can you do to protect your property?

Landlord Insurance is available so that in the event of a loss (by an insured event) you will be protected and covered. In order to reduce the chances of a loss you can however take certain steps to help. These include:

- Make your property more secure by installing deadlocks on doors and locks on the windows.

- Install an alarm system. Many insurers will offer a lower premium because you have lowered the risk of loss through theft. For certain postal areas a minimum level of security will be required.

- Remove potential fire hazards from around the outside of the house as well as inside

- particularly around the kitchen.

- Make sure you have working smoke detectors and a suitable fire extinguisher. Put the extinguisher somewhere handy and make sure members of your household know how to use it.

What should you insure your contents for?

As a landlord, it's quite possible that the property that you are letting contains contents that you own. It is important to note these contents and ensure that you have provided adequate cover for them in your insurance policy. It might be worth doing a room by room inventory and working exactly what level of cover you require. Again though if you are in any doubt, just ask your Insurance Broker.

How can landlords minimize financial losses related to repairs and maintenance?

You can avoid many problems by maintaining the property in excellent condition. Here's how:

- Use a written checklist to inspect the premises and fix any problems before new tenants move in.

- Encourage tenants to immediately report safety or security problems such as plumbing, heating, broken doors or steps

- whether in the tenant's unit or in common areas such as hallways and garages.

- Keep a written log of all tenant complaints and repair requests with details as to how and when problems were fixed.

- Handle urgent repairs as soon as possible

- take care of any safety issues within 24 hours. Keep tenants informed as to when and how the repairs will be made.

- Twice a year, give tenants a checklist on which to report potential safety hazards or maintenance problems that might have been overlooked. Use the same checklist to personally inspect all rental units once a year.

Also, your commitment to repair and maintenance procedures should be clearly set out in the lease or rental agreement. Owning a property or a portfolio of properties can be very rewarding so follow these simple tips and make sure you and your properties are protected at all times.

This article was written by Mark Burdett, Marketing Manager of Northern Counties Insurance Brokers.

For further information on Northern Counties Landlord Insurance visit http://www.northerncounties.com/landlord-insurance.php

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Rental Property Insurance
By Josh Riverside

Renter's insurance is like homeowners insurance. You pay a monthly or yearly premium, as well as a deductible. The higher the deductible, usually the lower the monthly payments.

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Rental Property Tax Deductions That Will Slash Your Landlord Tax
By Teo Zhenjie Platinum Quality Author

If you are a landlord or property manager, knowing your rental property tax deductions is vital for cutting your taxes to the minimum. Find out how to enjoy lower landlord taxes and boost your profit margins right now. Rental property tax deductions are basically rental expenses that you are allowed to deduct when calculating your taxes. They are crucial because they will reduce your total amount of taxable income.

To cut down your landlord taxes, you can should to include as many tax deductions that you are allowed to use. The following are the common and important deductions that you can enjoy as a landlord:

1. The Depreciation Value of Your Property

When you buy a new rental home, you cannot claim the full amount that you paid for it as expenses right away. Instead your property is slowly depreciated over a long period of time.

Depending on the country that you live in, most depreciation periods for residential property range from 20 to 30 years. Home owners are usually not allowed to claim depreciation as tax deductions so you will not be able to apply this to your own home.

2. The Premiums for Your Landlord Insurance

Being a landlord means that you will usually have to buy a series of insurance polices such as building insurance, home contents insurance and landlord liability insurance.

You will be able to treat the premiums that you fork out for all your landlord insurance policies as tax deductions. If you employ people to manage your rental real estate, you will be able to claim the premium for their worker insurance as rental property tax deductions as well.

3. Interest on Your Mortgage and Credit Cards

Unless you are awfully rich, you would have taken out a mortgage loan to pay for your property investment. Fortunately you are allowed to deduct this sizable interest charged by your bank or mortgage lender.

If you pay for any of your rental expenses by credit card, you will also be allowed to deduct the relevant credit card interest from your total taxable income.

4. Your Property Repair and Maintenance Bills

The money that you fork out to maintain your rental home in habitable condition is also tax deductible. This refers to any repairs or maintenance that are conducted to make sure that it meets your local health and safety housing standards.

However you must know that any home improvements that you carry out for the purpose of boosting the values of your real estate cannot be considered as a deduction. If you hire a contractor or repairman for repairs, make sure you ask them to give you a receipt with the property costs and type of repair work stated on it.

5. Travelling Costs for Managing Your Real Estate

Any travelling expenses that you rake up for rental activities such as rent collection and property repairs are also tax deductible. You are usually allowed to deduct both your gasoline costs and vehicle's maintenance bills. If you own rental properties abroad and you travel overseas for real estate activities, you may even to claim your airplane tickets, hotel stays and travelling fares as rental property tax deductions.

The tax agencies in most countries will monitor your tax claims for overseas travel quite closely so be sure not to abuse the system and keep proper written records of your spending such as receipts and bills.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com - To learn more important tips on rental property tax deductions, visit his website today for step-by-step real estate guides, free resources and forms.

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Is Landlord Contents Insurance Crucial For Your Rental Property?
By Teo Zhenjie Platinum Quality Author

Landlord contents insurance is a type of insurance coverage that compensates a landlord for property loss or damage. Contents insurance usually covers any fixtures, appliances, furnishings on the rental property that belong to you.

In some cases, it may also include outdoor fixtures like fences and garden fittings but every insurer is different so you should always read the fine print just to be sure.

There are two types of contents insurance for landlords. The first is standard insurance; the second is accidental. Landlord contents coverage usually insures the landlord's property in an amount ranging from $10,000 to $50,000.

As a landlord, you may be wondering whether landlord contents insurance is a worthwhile investment. There is no simple answer to this question since every landlord's situation and needs are different. Use the following information to help you decide whether to buy this type of insurance and what kind of coverage is best suited to your needs.

Choose Standard Landlord Contents Insurance if You Want Basic Protection

A standard policy typically protects you from damage caused to furnishings, appliances and fixtures during the normal course of a tenancy. Most landlords do not require this type of coverage for a couple of reasons.

The first reason is because a tenant's security deposit will typically cover any normal wear and tear. And secondly some landlords don't provide home furnishings for tenant use.

On the other hand, if you provide a fully furnished rental property for your tenants, it may be a good idea to purchase this type of coverage. This way any damages to furniture and fixtures can be paid for by your insurer. This coverage usually applies to normal wear and tear only.

Go for Accidental Landlord Contents Insurance if You Want More Protection

In contrast to standard insurance, accidental coverage will pay insurance proceeds for damages that may occur due to tenant negligence and other types of accidents or disasters. For instance, this type of coverage might apply if a tenant rips your sofa when moving out of the property or if a fire out break destroys your furnishings and fixtures.

Most insurance policies will provide coverage in the event of theft or vandalism, tenant negligence, fires, floods, storms, and explosions.

Just to be sure, it's important to read the fine print before purchasing a policy. You will also want to find out whether outdoor structures are covered. For example will you be compensated if your tenant accidentally damages the fence with her car?

Landlord insurance will only cover furnishings that are provided by the landlord. If your tenant wants coverage for his or her own belongings, then they must buy a separate renter's insurance policy.

Should You Purchase Landlord Contents Insurance for Your Rental Property?

In most cases, a standard or comprehensive contents insurance policy is not necessary unless the landlord provides most or all of the furnishings for a tenant.

For unfurnished properties, simply make sure that you collect enough security deposit to cover daily wear and tear. On the other hand, an accidental policy is a good idea to protect your fixtures and appliances in case of accidental damage or natural disaster.

Teo Zhenjie has been showing landlords how to manage their tenants and rental property effectively on Propertydo http://www.propertydo.com/ - To learn more important tips on landlord contents insurance, visit his website today for step-by-step real estate guides, free resources and forms.

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