Landlord insurance

Menique Stuart

Why it’s crucial!

Having the right cover in place will not only save the day for landlords, but it can provide you with solutions and positive outcomes in worst-case scenarios.

Help protect yourself from the situations you cannot predict

Landlord insurance may cover your unforeseen repair bills due to damage by an insured event and possible loss of rent if the home is unliveable. This helps protect you against the financial risks caused by unexpected damage or loss to your property. Landlord Insurance covers you for tenant-related losses. Things like loss of rent due to a tenant breaking their lease or being evicted, or damage caused to your contents by tenants, like drink spills on carpets. Other insurance may not cover these events, and very often, the bond won’t be enough to cover the associated costs.

Landlord insurance provides an additional layer of protection that goes above and beyond regular insurances for properties. You can have peace of mind knowing that if unruly tenants damage your property, or vacate owing rent, you will be covered. It takes a lot of guesswork and worry out of the renting process for landlords, and we highly recommend it – as investment property owners ourselves.

Here are some areas a landlord policy can cover you for:

  1. Damage by tenants – a standard house insurance policy might have cover for accidental damages caused by tenants, but will not cover intentional damage by tenants. Intentional damage can come from your tenant punching walls, vandalising the property or throwing a raucous party. This is a common insurance claim for landlord’s, and can often prove costly.
  2. Loss of rents – rental income is essential to landlords. If your rental is damaged and it can no longer be rented, you face both the costs to repair and the lost rental income you would have otherwise received. Standard house insurance will not cover loss of rents. A landlord insurance policy will provide cover to repair your property, while also paying you lost rents while it is repaired.
  3. Liability protection – as a landlord, you could be held liable to pay damages or reparation for accidental bodily injury or loss to someone else’s property that arises out of the ownership of your home.
  4. Landlords furnishings – you can also protect specific furnishings that you’ve provided to your tenants, including refrigerators, dishwashers and washing machines.

Many investors believe they have adequate cover under their current policy only to find at the point of making a claim that all is not what it seems. 

Every landlord insurance policy will likely contain unique requirements and it’s crucial you are aware of what these are e.g. in a damage claim you’ll likely be required to show evidence.

It’s important to ensure you have the right cover against all possible outcomes.

To learn more about getting the right cover for your investment, and what policy is best for you, get in touch with one of the team today.