Many property investors understand the importance of insurance, but they don't understand how Landlord's insurance protects them as property investors.
Landlord insurance covers owners from the risks that are associated with tenanted investment properties. A Landlord insurance policy for a unit would cover such things as a tenant who absconds and stops paying rent; costs associated with evicting a tenant, malicious, accidental or intentional damage to the property by the tenant, fires and theft. All of these situations have the potential to leave your property a) untenanted for a period of time and b) may result in costs to you as the Landlord. Landlord's insurance provides compensation to the Landlord for the costs that they incur to rectify the property, and also compensate the landlord for the loss of rent during that time. Many policies will also cover legal fees that may incurred in evicting tenants and recouping lost rent.
Building insurance may also be necessary for houses to cover the building itself. Insurances for investment properties are a tax deductible expense. At Melissa Maimann Buyer's Agent, I am able to recommend insurance companies and explain the differences in the policies and what they cover so that my clients' investment properties are fully covered.