Insurance

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From: Mike .


Rent Insurance
From: John B
Date: 7/20/00
Time: 12:57:27 PM

Getting rent is the key to any IP. I've heard you can take out rent insurance. ie insure against vacancies. ie 3 or 4 weeks rent as a premium. This would ensure a constant rent flow. Is this true? How much? Is there a catch? If not then isn't it a good idea?

 

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Lacewing

Reply: 1
From: Mike .


Re: Rent Insurance
From: Lacewing
Date: 7/20/00
Time: 8:53:12 PM

Okay, I admit to knowing almost nothing about this, but when my husband and I bought our first investment property (through a marketing company) they offered a rent insurance. We didn't take it because it didn't actually pay the full rent for the time the property was vacant, just the difference taking into account your tax deduction. So it might have only been say, $30 a week. Although the price for the insurance was low, it also didn't cover much.