Why you need Landlord Insurance
If you have an investment property, it might pay you to think about investing in landlord insurance which can cover you for these potentially expensive scenarios:
- Theft or burglary by tenants or their guests
- Malicious damage or vandalism by tenants or their guests
- Loss of rent due to tenant default
- Legal expenses required to evict a tenant
A comprehensive landlord insurance policy can protect you against various situations that home and contents insurance policies won’t cover. It’s also an investment expense, so your policy premium is tax deductible.
Landlord insurance can also cover you if you rent your investment property out on a short-term basis, for example via Airbnb or similar, or if you rent out a room in your home, or a granny flat that’s attached to your property.
In the event a renter or guest damages your property, you could be faced with expensive repairs that aren’t covered by your home and contents policy. Even worse, you could face expensive public liability claims if a renter is injured while staying on your property – which could amount to hundreds of thousands of dollars.
Before you purchase a landlord’s insurance policy however, make sure you check the terms and conditions, what is and isn’t covered, and the excess that applies if you make a claim, as these can be quite different from policy to policy.
Call Phoenix Insurance Brokers today. Your local broker will ensure you find the landlord insurance policy that’s right for you.