Is Eviction Insurance Right For You?

It is an unfortunate reality that even the best of landlords will have to evict their tenants from time to time. All evictions are expensive because of the fees necessary to pay your attorney and the court. You can't count on the evicted tenant's security deposit to cover these costs because the tenant may have damaged the property or may have months of unpaid rent.If you're wondering: Should I Get Eviction Insurance? consider the following: Even if there are no other damages to cover, the security deposit may still be insufficient because the tenant might be entitled to damages from you for violations of the lease or other laws. Furthermore, you will be hit with these costs at a time when you are no longer collecting rent from the tenant. This scenario is frightening, but getting eviction insurance can help reduce the cost.

How to Get Eviction Insurance: Eviction insurance can be purchased by paying a small monthly fee to your Sacramento property management company, usually between $10 and $25. For this small fee, the property management company will cover the costs of most eviction court cases. Since you don't have to worry about having your costs increase, you will have more freedom in deciding whether to evict tenants. Most eviction insurance contracts will not cover litigation costs of cases that go to a jury, but since almost no eviction cases go to a jury, your insurance will most likely cover your litigation costs.

If you have further questions about the benefits of eviction insurance, please contact rental property management in Sacramento today.