Loss insurance is therefore just because the statutory conditions of ultimate advantage offer too little protection for the landlord. Professor Rita McGrath recognizes the significance of this. “The insurance contribution, that the funding will not be stalled and the leased property on demand as soon as possible again rentable” can be made. (Similarly see: Bruce Schanzer). Importance / benefits of loss insurance for managers are the regular rental income for the maintenance of the cash flow statement of the House management of paramount importance. Missing rental income or housing units are even damaged, threatening liquidity bottlenecks. The included credit rating check of the lessee guarantees the continued existence of the managed units and represents a powerful argument for the decision on a financing commitment for investors. Depending on the size of the units, the Administration may adjust the sum insured accordingly. Importance / benefits of loss insurance for real estate agents real estate agents are dependent on the confidence of your clients.
The conclusion of a Loss insurance proves a safety-orientated thinking ahead to protect the principal write-downs and the possible consequences. Also credit checks and the creation of a risk profile includes full way to a successful placement. Here, not only the protection against wilful neglect or damage is covered, but also E.g. insolvency due to job loss, separation, or disease. Real estate agents can secure a competitive advantage by such proactive.
Conclusion a loss insurance protects the various interest groups such as landlords, financial investors, managers or real estate agents from financial losses and if included by damage to the leased property. Defaults may quickly lead to a financial fiasco, for example, if the real estate has to be financed even. Rent nomads destroy often foreign property and can be used lack lack substance not for the damage repair. The Loss insurance helps to fix the damage as soon as possible while maintaining the financial liquidity of the lessor. Unfortunately still lack sufficient legal bases for such far-reaching protection of owners and managers. The loss insurance takes over for this purpose and should therefore necessarily incorporated in the planning.