Going travelling? You get travel insurance. Buying a car? Car insurance. Why, even hand models have been known to insure their famous fingers. But one insurance that is often overlooked is landlord insurance.
Landlord insurance covers a wide range of incidents, which aren’t covered by other types of home and contents insurance:
– Loss of rent if your tenant defaults their rent payments
– Legal expenses if you need to evict a tenant
– Theft or burglary by a tenant or their guests
– Vandalism or malicious damage by a tenant or their guests.
Before seeking landlord insurance, it’s important to consider the following:
Are you renting your property furnished or unfurnished? Building insurance doesn’t cover contents. How much would it cost to replace the contents, including the carpets and furnishings? Is this included in the policy?
Are you allowing pets at your property? Ensure the policy covers damage by pets if you do.
Are there any specific risks to your area? Do you live in a fire or flood prone area?
Are you on a strata property? The fabric of the building is usually insured by the body corporate; however, you can purchase ‘strata title protection’ which will cover you in the event the body corporate is underinsured.
It’s important that you look closely at the terms and conditions of your landlord insurance and the excess that applies. Be sure to shop around and remember the cheapest is often not the best.
Lastly, landlord insurance is tax deductible.