As a property owner, you rely on the tenant’s payments. If he or she defaults, you may feel like you are in over your head with costs. How can you make payments and make a profit when someone defaults? This is why having loss of rent insurance is so important.
Tenants Don’t Always Pay
The perfect tenant is sometimes difficult to find. When you enter into a rental agreement with a tenant, you hope that he or she will make good on his or her side of the contract. The problem is that sometimes life throws unexpected obstacles in the way. No matter the reason, if you do not receive money, this is a loss to you. Even the most reliable tenant on paper may end up unable to pay and you have to account for that risk.
Loss of Rent Insurance Protects
The experts at https://www.rentrescue.com/ explain how insurance can protect landlords from the financial drain. Policies may include legal fees for pursuing eviction or missed payments, one-month rent and reimbursement of rent lost.
If you own a property, you may trust that your tenants are going to pay. In a perfect world, tenants always pay rent. Unfortunately, circumstances change and you may need financial protection if one of your tenants does not pay.