An Insurance Insider Exposes
The Shady Practices And Underhanded Tactics
Used To Devalue Claims For Insurance Company Profit
Landlord's Protection to His Let Out Property - Tenanted Property Insurance!
By Kirthy S
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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Article Source: http://EzineArticles.com/?expert=Kirthy_S
Low Cost Landlord Insurance - How to Slash Your Monthly Premiums
By Teo Zhenjie
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.
Article Source: http://EzineArticles.com/?expert=Teo_Zhenjie
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.
Article Source: http://EzineArticles.com/?expert=John_Mazzara
Maximizing Deductions on Your Real Estate Rental Property
By Thomas Corley
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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