Monday 25 March 2019

Landlord insurance – effects of tenants’ pets

Author: Cambridge Web Marketing

As a landlord, it’s essential that you make sure your rental property is correctly insured. A comprehensive insurance policy will cover a variety of factors including accidental damage, vacancy, fire, and floods. Some policies will pay your tenants’ rent if they’re forced to move out of your property because of serious damage, and many policies will help you to pay for repairs if the tenants themselves damage the building.

When taking out landlord’s insurance, it’s crucial to check that your property is properly covered. This means ensuring that all of the information you give your insurer is correct. It also means you need to check that your policy covers every aspect of your tenancy agreement. If not, you may find you’re unable to make a claim in an emergency.

One thing that a lot of landlords fail to check is whether or not their policy covers pets. If you allow tenants to have pets in your rental property, ensuring they’re covered will help you to protect your investment and your finances.

Tenants and pets

A lot of landlords put a blanket ban on pets in rental properties as they fear the damage that unruly cats, dogs, and other creatures can do. However, banning pets in your rental home may be a mistake. As @Upad says, “Tenants with pets take up to 7 times longer to find a suitable rental property. This means that pet owners may be more likely to stay in a property longer, reducing your void periods, because of the issues they face when moving.”

As well as staying in properties for longer, a lot of animal-loving tenants pay more rent than their pet-free counterparts. This is because many are willing to pay a premium to live in a property that allows them to keep their furry friends.

Pets and landlord’s insurance

When taking out your landlord’s insurance policy, you need to ask your insurer specifically if pets are covered. If you don’t, you may find your policy is invalid. If your current insurer won’t cover damage caused by tenant’s pets, you may need to look elsewhere for your policy.

Luckily, there are a number of insurers out there who will be happy to add pet cover onto your policy, so finding a company that will insure your property should be easy.

Other ways to protect your home from pets

Another good way to protect yourself financially from the potential damage caused by pets is to ask animal-loving tenants to pay a higher deposit. A lot of landlords ask tenants with pets to pay one and a half, or even twice as much as other tenants when putting down their deposit. If necessary, this money can then be used to clean or replace carpets, repair soft furnishings and deodorise a property when the pets and their owners move out.

Whenever you take out an insurance policy, reading the small print is essential. Learn more about landlord’s insurance and finding the policy that’s right for you by getting in touch with us today.

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Written by: Cambridge Web Marketing