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There is a multitude of insurance products on the market, and it is likely that you have comprehensive insurance for your primary place of residence and your car as well as your health.
It makes sense that you should take out specialised insurance to cover your investment property and to ensure that you are protected should the worst-case scenario happen throughout or between tenancies.
Property damage is covered
In a specialised landlord insurance policy, you can be covered for the building and any damage that occurs due to natural disaster events or events outside your control. A good policy will also cover for accidental damage to the property that may occur due to the tenants use.
Accidents do happen, even in our own homes and having coverage for this can ensure that the property can be repaired in no time and at a minimal cost to you or the tenant.
During vacancy periods, there can be potential for damage to the property. Landlord insurance will protect your liability over this time as well as throughout a tenancy.
Coverage for unpaid rent
Even the best tenants cannot plan for what life may have in store for them and for reasons outside their control, may fall into arrears at some point during their tenancy.
While our property management team has strict policies in place when it comes to arrears management, we are also realistic that life happens, and we will work with both the tenants and Owners to find a solution to rectifying rent arrears.
Where an easy solution cannot be found and should the tenant need to move on, a landlord insurance policy can assist in reducing stress and ensuring that your income is secured by covering the rent loss in these scenarios.
Some policies will even cover for rent loss during a vacancy period if there has been property damage and it takes time to have repairs carried out and the property relisted.
Don’t forget the contents
Tenants are strongly advised to take out their own contents insurance for their belongings, however, this insurance will not cover items like window coverings, light fittings, appliances and floor coverings.
In a strata complex, the building insurance may cover the building but not the contents within your property. For example, if there is a burst water pipe or other damage to the property, the contents of your apartment may not be covered.
In cases like these, there could also be potential compensation to the tenants, and you will be left out of pocket if you do not have landlord insurance, or your policy is not specialised to cover these events.
If you don’t currently have landlord insurance or would like to arrange a policy, our property management team can assist with helping you get started.