How to Find the Right Landlord’s Insurance Cover
What Does Landlord’s Insurance Cover?
Unlike other types of cover, landlord’s insurance is tailored toward tenant-related issues, such as property damage, theft or unpaid rent. Landlord’s insurance cover typically includes:
- Theft and vandalism
- Delay or loss of rental income
- Early break of lease by tenant
- Fire and natural disasters
- Major building damage, such as gas explosions or water damage
While standard landlord insurance policies aim to cover the most common and expensive risks of leasing a property, additional building cover can protect your property even further, including damage to:
- Fixed appliances (e.g. air conditioners, dishwashers)
- Pipes and cables
- Walls and windows
- Gas or plumbing systems
- Fixtures and fittings
Theft or damage to specific items and furnishings which aren’t typically covered by landlord or building insurance may come under personal contents insurance, including:
- Electrical appliances
- Carpets, curtains and blinds
Depending on your insurer’s policies, some parts of your property may be covered by landlord’s insurance and others by building insurance. Building insurance can also potentially cover loss of rent while your property is being repaired, although unlike landlord insurance this is usually presented as an optional extra.
Why Do I Need Landlord’s Insurance Cover?
Landlord’s insurance cover is essential to protecting your investment property. Without proper insurance you could be left paying for property damage and other tenant related problems out of your own pocket.
Serious property damage can also leave you without a means to collect rent or having to rebuild your property. Landlord’s insurance can help to quickly replace and repair damage while covering court fees and other financial costs.
In many cases, a bond won’t be enough to cover tenant related damage. While some landlords might believe they can save money by not getting insurance, the high risk and cost of damage on an investment property will likely outweigh insurance fees and premiums. The cost of landlord’s insurance for residential investment properties is also normally tax deductible, making it even more affordable.
What to Consider When Choosing a Policy
Most tenants will take good care of a property they’re renting, but there’s always the risk of an accident or other change in circumstances. In these cases, damage can be caused that isn’t covered by standard policies. Properly insuring a property and its contents can give you the peace of mind to know that your investment is protected.
Liability cover can also be a consideration for landlords. This covers your legal responsibility for accidents which occur on your property, resulting from your negligence. As medical bills resulting from an incident like this can be costly, property owners should also consider whether their personal liability could be at risk.
What Should be Included in my Policy?
- Cover for theft and vandalism by a tenant
- Liability protection from accidents on your property
- Protection from loss of rental income during repairs
- Protection in the case of default on rent or break of lease
- Protection in the case of explosions, water damage and other expensive structural damage
- Protection against serious damage to internal building systems such as gas or plumbing
- Protection against tenant’s damage, whether intentional or accidental
It’s always important to check the terms and conditions in the Product Disclosure Statement (PDS) of your insurance policy to ensure you’re correctly covered and know when you can claim.
Phoenix Insurance Brokers Pty Ltd can help you to find the right insurance cover for your needs. Our dedicated team will work to get the best deal possible and assist you with the claims process. Contact us today to see how we can help you.