As an investor, unforeseen issues can arise and cause you to lose rental income from risks such as unpaid rent, malicious damage, accidental damage, and legal liability. Therefore, it is important to choose an insurance policy which fits your needs as a landlord:
What are some risks landlord insurance can cover?
- loss of rent
- accidental loss or damage, caused by storm damage or bushfire
- malicious loss or damage
- tenants abandoning the property
- the property being used for illegal operations
What is Contents Insurance?
If you are leasing your property that is furnished, you can also get additional contents only insurance if your furniture, electronics, or possessions are damaged, lost or stolen.
What is Building Insurance?
Building insurance will typically cover complete or partial destruction as well as loss of rent whilst the premises is uninhabitable. If you already have building insurance, notify your insurance agency that the property will be used for renting.
What Risks will Landlord Insurance not cover?
Landlord insurance generally does not cover market conditions or the decrease in rent revenue, contents owned by the tenant, mould damage, fair wear and tear and planned expenses such as maintenance.
- What are some things to look out for when choosing an insurance policy?
- Does the policy cover for death of a tenant, of the tenant defaults whilst on a non-fixed term agreement?
- What are the excess amounts charged on each claim? If there are multiple items being claimed, is there a cap on how many excesses that can be charged with each total claim?
- Do they provide a multiple property discount?
- Can your claim be approved by the agent, or does it have to be approved by an underwriter which can lengthen the claim time?
Will body corporate look after insurance on my strata titled property?
Body Corporate may only insure the building and common areas, not the contents within the unit or any unpaid rent or legal liability.
What insurance companies do we recommend?
EBM- Rent cover
Terri Scheer
Realty Protect
Have more questions about your investment property? Want to ensure you are maximising your returns? Why not see the difference a dedicated team of property managers makes? For a free copy of our Property Investors Guide or an obligation-free chat, email our Director, Casey Healey, on casey@c21newcastle.com.au or phone 02 4928 7400 today.