When you are involved in real estate investment, there are things that happen suddenly, even if you would prefer to avoid them.
That is damage to a building caused by a natural disaster.
This time, I would like to share a story from my own experience where I was truly saved by having fire insurance.
I never imagined a typhoon would destroy a front door…
Previously, I owned a property near Kozukue Station on the JR Yokohama Line.
It happened one year when a typhoon hit.
When people hear about building damage caused by a typhoon, many probably imagine cases like broken windows, blown-off roofs, or roof leaks.
However, what happened at my property was, believe it or not, the destruction of the front door!
I could understand a broken window, but I never imagined the front door would be destroyed.
I received a call from the management company, and when I heard the situation, it turned out that when the tenant opened the front door on the day of the typhoon, a gust of wind blew in, and the force of it broke the spring mechanism that secures the door to the entrance.
The power of nature is truly terrifying…
The repair cost was a staggering 330,000 yen!
For a real estate owner, building damage or equipment failure not caused by tenant negligence must, in principle, be repaired by the landlord.
Since it is my own property, I have to fix it myself.
It is obvious, one might say, but a sudden expense is still painful.
This time, too, I had the management company get a repair estimate, and they said it required a replacement rather than just a repair.
The amount was…
a whopping 330,000 yen!
That is quite a sum for a single front door.
As an unexpected expense, it is by no means small.
This is going to hurt…
When I thought that, the fire insurance I had signed up for became my lifeline.
After contacting my fire insurance provider, the payment arrived within a week!
I immediately contacted my fire insurance representative.
I sent photos showing the damage, a brief explanation, and the repair estimate.
Then, to my surprise, the insurance money was deposited within a week!
Of course, insurance payouts vary depending on the contract terms and the circumstances of the incident. However, in my case, the process was smoother than I had imagined.
Honestly, I never expected them to respond this quickly.
If I hadn’t been enrolled in fire insurance, I might have had to pay the full 330,000 yen out of pocket.
Through this incident, I once again realized the importance of having insurance.
Insurance is not just about coverage; the relationship with your representative is also important
There is one other thing I felt was good about this experience.
That is the fact that I was able to communicate directly with my insurance representative.
Since I had their mobile number, I could consult with them immediately when something happened.
Of course, using the insurance company’s dedicated hotline is also perfectly fine.
However, for an impatient person like me, being able to contact and consult with the representative directly was something I was very grateful for.
Knowing exactly who to contact in an emergency.
And having someone you can consult with when you are in trouble.
I feel that this sense of security is also one of the benefits of having insurance.
Fire insurance is a necessary expense for rental property management
For owners of rental properties, fire insurance is an essential safeguard.
In my experience, for a single building with about 10 units and a total area of 200 square meters, the monthly cost can be around 3,000 yen, depending on the coverage and building conditions.
Of course, the actual insurance premium varies based on location, structure, building age, and coverage details, so you must check with a quote.
Also, insurance premiums necessary for rental management can generally be recorded as business expenses. You should confirm the actual tax treatment based on your contract details and usage.
Looking only at the monthly insurance premium, you might be tempted to cut costs.
However, as in this case, unexpected repair costs of 330,000 yen can arise.
You never know when damage from natural disasters will occur.
That is why it is important not only to focus on immediate yields but also to prepare for potential risks.
Summary: In real estate investment, protection is also important
This typhoon damage was an event that made me realize the value of fire insurance.
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Front door damaged by typhoon
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Repair and replacement cost was 330,000 yen
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Contacted fire insurance and submitted necessary documents
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In my case, the insurance money was deposited within one week
In real estate investment, it is easy to focus on increasing rental income and raising yields.
But to continue rental management for a long time, preparing for unexpected expenses is indispensable.
Real estate investment is not just about earning, but also about protecting.
Why not take a moment to check the coverage details of your own property’s fire insurance?
Note: This article is based on personal experience. Coverage, payment amounts, and insurance premiums for fire insurance vary depending on contract details and property conditions.
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