Landlord Property Insurance - Do I need it?
By Jun Kurosawa
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Landlord insurance is one of the most important purchases a property investor can make. Although not all tenants are bad, you do need to ensure that you are covered should something go wrong, particularly for malicious and intentional damage which may not be covered under your standard insurance policy. Infinty Property Agents highly recommends covering your investment property with a tailored Landlord insurer.
The insurance covers you for tenant-related losses, including the loss of rental income because a tenant decides to break their lease or is being evicted and loss or damage by tenants to your investment property and its contents. Very often, the bond won’t be enough to cover the associated costs and hence the importance of having a comprehensive Landlord insurance policy.
Common features of a Landlord insurance policy include:
- Absconding tenants
- Defaulting tenants
- Death of a tenant
- Hardship
- Untenantable property
- Prevention of access
- Lease break
- Failure to give vacant possession
- Failure to vacate a holiday let property
Not all Landlord protection policies are the same. Some include contents suitable for fully furnished properties; others offer a more comprehensive policy which includes liability insurance and legal expenses. Speak with our Property Manager who can advise you of the most suitable policy for your property.
Who to Choose?
There are several options available in Australia. Below we have listed our Top 3
- Terry Sheer > https://www.terrischeer.com.au/landlord-insurance/
- EBM Rentcover > http://www.rentcover.com.au/products/
- AON > https://business-insurance.aon.com.au/professions/real-estate/landlord.aspx
As with all policies, ensure that you are aware of the fine print. What is covered, excesses, extent of the nominated coverage. Not all landlord protection policies are the same as some are designed to be taken out in addition to a typical home and contents or strata title policy, while others are more comprehensive and stand alone.
Research also indicates that landlords who used real estate agents to manage their relationship with their tenants were likely to face fewer problems than those who self-managed their own properties. It gives you the security of ensuring that you have an active tenancy agreement in place, thorough screening process, reference checks and regular inspections. To find out how Infinity Property Agents Sydney can assist you in the management of your property, call (02) 9699 9179.