Mother nature is hitting us again and I want to express my thoughts and sympathy for those who have been affected. It sure does feel like there are more and more natural disasters happening around the world, and just as we are starting to get our feet under us, then we are hit again! If only there were a way to predict when and where the next disaster was going to be, we would feel more in control.
There is, however, something we can do to help minimise the impact of a disaster and protect ourselves and families. Like with most things, it comes down to planning and preparation. We all know that we are supposed to have an emergency survival kit, and if you haven't put together a kit for your family or business, then go here (PDF) Look at what you need to have in your kit, then put it together - sooner rather than later! Furthermore, when it comes to your rental properties, you need to take a few extra precautions and it all comes down to paperwork and insurance. Without some forethought and a bit of work, you could put yourself at a lot of risk.
Paperwork
Just like with your primary residence you need to gather paperwork. Along with the usual list of important papers you need to include all your rental property paperwork. As stated in the article, it may be worth investing the money and keeping your family's and investment property's paperwork at an outside source. Either a safety deposit box, a lawyer, or even scanning the paperwork and keeping a copy at an online data storage service.
Whichever way you choose to go it's important to have multiple copies of the documents, kept in separate locations to ensure that if one copy is destroyed, you will have access to other copies. Keeping a list of important people you need to contact is a great idea too, but remember that in an emergency, it might be difficult to get in contact, as they may be affected also.
Insurance
It's a tricky business to figure out what sort of insurance you need as a landlord, as everyone's situation is different. I can't advise you on exactly what you need, but I can give you an idea on what is not enough. If you just have homeowners insurance, then you are without a doubt under-insured. There are a lot of areas that you could be held liable for, and without the proper insurance you could put yourself in a lot of financial trouble.
Having the right insurance not only will protect you from from natural disasters but also from disastrous tenants. Many insurance policies not only cover damage, but also cover the lose of rental income. They will be a bit more expensive than just homeowners insurance, but the peace of mind is priceless. So please look into this, talk with your insurance agents to come up with the best options for your situation. Here are helpful websites which should point you in the right direction.
I hope that you read this before anything happens, do the work now, before you need it, and you will hopefully get through the tough times with minimal upheaval.
Unfortunately it is, and it will always be the same.
ReplyDeleteI think preparing for a disaster will help you to survive in some of the situations, not always! Thanks for sharing, it was an interesting article