The importance of rental property insurance and landlord insurance

Owning rental property can be an excellent means of generating additional income. It's essential that you protect your investment with rental property insurance and, in some cases, landlord insurance as well.

• Rental property insurance can be included as part of your home property insurance. In fact, you can extend coverage from your primary residence to cover several additional income-generating properties. Make sure your home insurance company offers comprehensive property liability insurance with your home insurance. Landlords should never overlook third-party liability.
• Landlord insurance is designed to cover the rental income of a property if it remains unoccupied because of loss. If you have a substantial investment in your rented property, landlord's insurance can protect this income for up to 12 months.

Beyond rental property insurance - Important considerations

Before deciding to purchase rental property and rental property insurance, there are some important considerations to bear in mind while you search for a lucrative investment.

• Purchasing rental property a great distance away from your own home can make rent collection and general maintenance and repairs overwhelming and time-consuming.
• Consider the tenant availability of an area, average rents charged and the ability of those tenants to pay this rent.
• Make sure the rent is enough to cover your mortgage on the property, maintenance, rental property insurance and generate an income.
• Be prepared to advertise for responsible renters who will fill vacancies and adequately maintain your property. A list of reliable tradespersons will help with home repairs.

HDF Insurance - Rental property insurance professionals

HDF Insurance is an insurance brokerage that provides more than landlord insurance and rental property insurance. We add value to our clients by providing advice and expertise to help them make wise decision when it comes to their investments.

Whether you're in Edmonton, Calgary, Alberta or Kelowna, B.C., we want to be your insurance company. Contact us for a rental property insurance quote today!