For many home owners, having an Investment Property is an excellent achievement, this can all become a disaster for those who don’t have a Landlord Insurance Policy.
In 16 years, I have seen all that can go wrong, and unfortunately the Investors who don’t have Landlord Insurance are the clients it generally happens to.
If you’re reading this and you don’t have Landlord Insurance, stop what you’re doing, and organise this urgently.
Landlord insurance is a type of insurance designed specifically for people renting out a property to tenants.
It bundles up the regular cover offered by a home insurance policy, with the additional cover that relates to investment property owners. It can cover contents belonging to the landlord in a property, depending on the policy.
What is covered under landlord insurance?
landlord insurance can provide cover for a range of different events, from the usual home insurance inclusions for fire and natural disasters to incidents related to a tenants’ lease, including theft, malicious damage and vandalism, loss of rent due to tenant default and legal expenses required to evict a tenant. It’s possible to get building-only or a policy that also covers contents belonging to the landlord, like carpets, blinds, dishwashers and removable air conditioning units.
A great example – A tree falls on a property during a storm, leaving it uninhabitable for twelve weeks. A home and contents-style policy would cover repairs to the structural damage, replacement of landlord-owned furnishings and fittings and cover any lost rent. A building-only policy would only fix the bricks and mortar.
This means landlords, when choosing a policy, need to consider all of the usual aspects of cover that any other home owner considers, plus the specific additions that apply to rental property.
Why you should get landlord insurance
For any new Investor discussing their purchase with me, I will simply advise them to get Landlord Insurance, don’t get caught out trying to save a few hundred dollars.
1. For peace of mind
An investment property is a massive responsibility and having landlord insurance is one way to have some peace of mind that you’re covered should things go wrong with your tenants or there is damage to the building.
2. To protect against tenant issues
Landlord insurance incorporates the protections that exist for a homeowner, plus the extra risks incurred by a landlord that would not otherwise be covered, such as protection for:
· Theft or burglary by tenants or their guests;
· Malicious damage or vandalism by tenants or their guests;
· Loss of rent due to tenant default and;
· Expenses required to evict a tenant
3. Because it’s tax-deductible
Being a tax deduction, it’s a no brainer to protect your valuable asset.
Don’t wait until it’s too late; secure your investment now with Landlord Insurance.
