When Landlord Insurance is mentioned some people automatically think they don’t need it because they already have a good Tenant but it’s important to know that landlord insurance is not only there in case the Tenant stops paying the rent or trashes the property….landlord insurance is also there to cover you in the unfortunate case where your Tenant passes away.
In my 11 years as a Property Manager I have dealt with both natural death and suicide in rental properties. Each of these situations are dealt with differently and they become even more problematic when the death goes unnoticed for days, weeks or even months…
When a Tenant passes away the landlord cannot just take possession of the property, there are processes in place which take time which also means loss of income. Then you have to consider, if the Tenant has been deceased in a property for a long period of time then you may also have the huge cost of trauma cleaning to bring the property back to a habitable condition.
Then, just when you think everything is becoming easier and you re-advertise the property for rent you find that it’s not so easy to re-lease the property. By law, the Agent is required to disclose that there has been a death in the property which is putting people off and the property continues to sit vacant while you are still paying the mortgage! And don’t think that you are not at risk of this situation if you have a joint tenancy, people who live together often travel together which can also result in the unexpected passing of both tenants in the once incident.
So please, when you have an investment property cover yourself to ensure that an unavoidable situation does not leave you in financial hardship.