Insurance tips for landlords

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With the risk of a third wave of the pandemic on the wane now, offices and industries are limping back to pre-Covid normalcy levels. Many offices across sectors are gradually returning to work-in-office culture. While some have 25% of staff working in the office now, in some other cases 50% of employees have already returned to office.

With colleges and universities also reopening in a phased manner, the rental market in the residential space is witnessing a rebound in demand, much to the relief of landlords.

When the pandemic broke out in 2020 in India, a vast majority of tenants across the country had vacated their rented houses. Many landlords suffered huge losses in that unprecedented situation. Unpaid bills apart, many house owners discovered to their horror that structural damage had been done to the property and damage to the fittings and furniture was beyond repair. Sudden loss of regular income and huge repair expenses dealt a double-whammy to them.

Now that tenants are returning, many landlords are looking at insurance as a tool to mitigate losses. While a suitable cover is available in the market, there are a few aspects that landlords need to keep in mind as far as insurance is considered.

Insurance premium: It is the responsibility of the property owner to pay the insurance premium in time and ensure that the property is covered all the time.

Tenant responsibility: Explain the terms and conditions of the policy to the tenant. Underscore the need for tenants to comply with insurance policy conditions.

Property maintenance: Typically, insurance does not cover the damage to the property due to negligence. Proper upkeep of the house is the responsibility of the house owner and tenant.

No theft coverage: Normally, insurance does not cover theft if the house was vacant at the time of the incident. A regular visit is advisable to ensure the house is occupied by the tenant most of the time.

Changes in premium: Tenants should intimate the house owner about the changes in the residence. It is for the landlord to inform the insurer as the changes will impact the premium and the terms and conditions of the policy.

Renovation: Under some policies, coverage could be compromised during the time of renovation.

Furniture: Last but not least, do not forget to include the furniture under the home contents section of the policy.