Landlord Insurance: What is it and why is it important?

Landlord Insurance: The things you need to know:

Many Australians have investment properties. In fact, according to the ATO, in 2018 about 2 million Australians owned investment properties. From the average Mum & Dad investor who are looking to get ahead, to the super-rich property magnates who seem to own half the town, almost every Australian finds comfort in property investment.

Whether this is because people find these investments easy to understand, or whether its because of the potential tax benefits (such as negative gearing), the demand for property investment is enormous. So is the market for Landlord Insurance.

If you are interested in a complimentary review of your Landlord Insurance or other business insurances, get in touch using the button below.

What is Landlord Insurance?

Put simply, Landlord Insurance is home and contents insurance for your investment property. It provides similar covers including Public Liability, storm damage, theft, fire, etc. but also includes other options such as loss of rental income and damage from tenants. Its important to note these aren’t standard on every policy and you will probably have to add them as extras.

Why do I need insurance when my tenants have paid a rental bond?

Some people opt to rely on the bond paid by their tenants instead of having a insurance policy. And, while the bond can act as a form of insurance, it is extremely limited in nature. If the house is to be damaged and the bill to fix it is into the tens of thousands of dollars, do you have the cash reserves to pay the additional amount on top of the bond? For most people, the answer is no. With your investment property being such a significant asset, its crucial to have the proper protection in place.

Does Landlord Insurance cover me for my Airbnb property?

In most cases, this won’t be an issue as long as this is disclosed to the insurer first.

In most cases, properties that are rented on a short-term basis carry more chance of a claim. This usually means that your premium will be higher as your property carries more risk, but it is still crucial that you have cover in place. If your insurer excludes short-term accommodation or won’t cover Airbnb, we are able to assist as we have access to a wide range of insurers who will provide cover.

Can insurance advisers help with Landlord Insurance?

We have helped a lot of clients with their Landlord Insurance policies. In most cases they have had policies direct with insurers before coming to us. We have been able to assist by pointing out some of the limitations in their policy, reviewing their overall situation and providing recommendations for policies that better suit their needs. In most cases, we have been able to save our clients money as well as increase their coverage.

If you are looking to get a better deal on your Landlord Insurance or are concerned you may not be properly protected, speak to us today.

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