Residential Landlords Insurance
Like home insurance, landlord insurance can cover your rental property and its contents against risks like storms, floods and fire. It can also cover the damage that tenants can cause to your contents – and even loss of rental income. Cover is also available for holiday rentals and long-term rentals.
Who should consider it?
Without landlord insurance, you could lose your valuable investment if it’s damaged or destroyed. You could also lose income from rent if you’re unable to rent it out during repairs, or if your tenants get evicted or break their lease.
What can it cover?
Landlord insurance can provide you with extensive protection if your investment property suffers loss or damage and can include additional benefits such as malicious damage by tenants, loss of rent following an insured event or if your tenants leave without paying.
Coverage can include
Automatic cover for flood and fire or explosion.
Automatic inflation adjustment if you need to make a buildings or contents claim.
Liability cover of up to $20 million for injury or loss of life to a third party, or loss of a third party’s property on a building you own.
Cover for damage to landlord’s contents – like carpets, curtains, washing machines and portable furniture.
Cover for loss or damage caused by tenants or their visitors.
Cover for loss or damage caused by electric motor burnout for appliances.
Catastrophe cover for declared natural disasters.
Tax audit cover.
Optional cover for loss of rent or an absconding tenant.
Cover for demolition and removal of debris, and architects and engineering fees.
What usually isn't covered?
Each policy is different, but generally you won’t be covered:
For damage from tenant carelessness or neglect.
For rust, corrosion, gradual deterioration or wear or tear.
If your home is unoccupied for sixty continuous days.
There are other exclusions which we can outline for you. In addition, there is a deductible/excess.
Residential Landlords Insurance Claim Example
Janet and Ross bought an investment property in Sydney’s inner west. They relied on the rent from the property to help cover their mortgage repayments. One year, they rented the property to some tenants who caused extensive damage to some of the walls, floor coverings and doors – and then left owing 12 weeks’ rent. Because the property needed repairs, Janet and Ross were unable to rent it out immediately.
Fortunately, the couple had taken out landlord’s insurance and included the rent default option. They successfully claimed on their insurance to cover their repair costs – and just as importantly, their missing rent. This allowed them to make their mortgage repayments and repair the property quickly so they could get new tenants in.
Contact our friendly team today to discuss your needs.