Landlord insurance for your Kelowna rental property is important when you want to protect your investment and rent it out with less stress. Whether you have tenants living in a single-family home, condo, or multi-family property, you need rental property insurance coverage that’s customized to your property and your financial needs.
What Does BC Landlord Insurance Cover?
We recommend you look for a strong insurance policy for your investment property. While no one wants to think about all the potential catastrophes, a lot can go wrong with rental properties. Without proper coverage, an unexpected disaster or accident can leave you financially devastated. Rental property insurance will cover any damage to your property that is a result of the risks outlined in your policy. The purpose of insurance is to repair or replace whatever is needed so that you’re restored as quickly as possible. Some of the protections a good landlord insurance policy will provide include:
- Fire and smoke damage
- Water damage from burst pipes or failing washing machines
- Damage caused by wind storms
- Theft
- Vandalism
If you don’t already have a reliable insurance provider, talk to our Kelowna property manager to get a qualified referral and the right coverage for your situation. If you prefer going at it alone, you can get an online landlord insurance quote from most providers in British Columbia.
Protect Yourself against Liability
Liability coverage is one of the most important reasons to protect yourself with landlord insurance.
You’ll be covered against any claims resulting from personal injuries or property damage, which can be intentional or accidental. For example, if someone is injured at your rental property, liability coverage protects you from having to pay
medical expenses out of pocket. If a tree in your yard crashes through the house next door, insurance will cover the liability arising from the neighbor’s repair costs.
Kelowna Rental Property Structure and Furnishings
A general landlord policy will cover any damage or destruction to the structure of your rental property. The tenant’s personal possessions will not be covered during a loss, but any of your own belongings will be protected. The appliances, for example, are covered, and if you’re renting out a furnished home, all of your furniture that’s affected will also be repaired or replaced.
The lack of coverage for your tenant’s personal possessions is an excellent reason that they should have renter’s insurance for their own peace of mind and financial security.
Loss of Rental Income Coverage
Not all landlord insurance policies in Kelowna will cover loss of rent. If yours does not, consider adding that to your existing policy. This can be a profitable way to protect your cashflows in the event that a tenant moves out due to covered loss.
Your cash flow and your ROI depends on consistent rental income. You have projected your earnings according to the full lease term, and unexpected losses can occur if that rent is suddenly not coming in. When something unexpected happens and your tenants cannot continue living in your property, you’ll need the insurance to cover the rental income you’re losing. You may also have to pay to put your tenants into a hotel or another property until repairs that make the home habitable can be made.
Depending on your policy, your income will be replaced until your rental home is ready for tenants again.
As a landlord, you should also make sure that all of your tenants have their own tenant insurance (also known as renters insurance). In the event of unforeseen circumstances, such as damage or loss, tenant insurance not only protects tenants but also reduces your liability as a landlord and safeguards the overall well-being of your rental property.
You know your property and your tolerance for risk better than anyone. You can put together a landlord policy that’s as simple or comprehensive as you need. For some help evaluating what would be best for you, please contact us at Vantage West Property Management.