4 reasons Landlord Insurance is a must for your investment property

With so many insurance products on the market, it’s sometimes difficult to know which policies are worth having. You’ve decided to invest in property to help with your financial growth, so why hesitate about taking out landlord insurance to protect your asset? There are so many reasons why it's essential to have landlord insurance. Here are a few we feel are top priorities.

1: Damage to your property is covered

One of the biggest concerns for landlords is whether tenants will look after their property. Let’s face it. Accidents do happen, even in our own homes. Whilst our screening procedure is stringent and thorough, there are unforeseen circumstances where a property may become damaged due to an accident or other random reason. We always recommend landlords have landlord insurance. 

Having up-to-date and adequate landlord insurance can ensure that your property can be repaired in no time and at a minimal cost to you or the tenant. A good policy will cover the cost of repairing any damage to the building caused by natural disasters, vandalism or theft. It will also cover any accidental damage to the property that may occur due to the tenant's use. 

2: Coverage for loss of rental income

No one knows what life has in store for them. Even great tenants with the best intentions may fall into arrears for reasons outside their control, but you still have a mortgage to pay.  

Our property management team has strict policies around the management of arrears, but we’re also realistic. We work closely with tenants and landlords to keep the lines of communication open so a suitable workaround is found to sort out any rent arrears.

If, for some reason, a solution can’t be agreed upon, the tenant suddenly leaves without notice or damages your property, leaving it inhabitable, you can reduce the stress around the cost of repairs and loss of rental income by having good landlord insurance. Subject to your specific insurance company’s PDS, this could potentially cover any gap in rent whilst you secure a new tenant, repair the damage or rebuild if necessary. Legal fees and other expenses may also be covered, dependent on your PDS should you need to take legal action against a tenant.

3: Contents coverage

Whilst we also recommend tenants take out their own contents insurance for their personal belongings, this insurance won’t cover you for things like window coverings, light fittings, appliances and floor coverings. 

In a strata complex, insurance will only cover the building itself and not the contents of your property. So, if a water pipe bursts and damages the finishings within your property, the repair cost will be your responsibility if you don’t have relevant landlord insurance. Your tenant’s contents policy should cover the cost of repair or replacement of their items. As a landlord, your contents policy will cover things like paint, flooring, lighting and blinds in this type of event. 

4: Liability protection

Accidents happen, and the last thing you want is for your tenants, their visitors or tradespeople to injure themselves on your property, leaving you to cover any medical expenses or other damages to your or their property. Landlord insurance provides liability coverage that will cover all these expenses for you.

Our property managers are well-versed in landlord insurance and can help guide you towards a reliable provider who can help you with the right coverage for your property. Just ask us!

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