What should my Landlord Insurance cover?July 6, 2017
Having an investment property can be a great financial decision and lead to long term financial gains. However, there are some risks that come with having tenants in your property and you need to have adequate insurance cover in place. But what does your Landlord Insurance actually do?
Although the specific inclusions on Landlord Insurance will vary depending on the policy, there are a few things you should look for when it looks for inclusions on your insurance cover.
What is Landlord Insurance?
Although property owners try to find the best tenants possible for their investment property, there are times when things will go wrong which is where Landlord Insurance comes in. Landlord Insurance provides cover for you as the property owner against a number of risk scenarios when you have renters.
If something happens to your property while it’s tenanted, it could have expensive consequences without insurance cover in place which is why Landlord Insurance is essential.
What cover can I expect?
There are a number of scenarios that Landlord Insurance can protect against, including:
- Accidental damage – This could involve a tenant accidentally damaging your fixed property, such as mirrors, flooring or cabinetry
- Vandalism or damage – When your tenants or their visitors cause malicious and/or deliberate damage or vandalism to your property
- Theft or burglary – If your tenants or their visitors engage in theft or burglary in your investment property
- Rent default – This is relevant if your tenants are unwilling or unable to pay their rent
- Loss of rent – If your investment property is unable to be tenanted for various reasons and you need require reimbursement for this loss of income
- Water damage – Protects your property from water related damage which may occur
- Liability cover – If a tenant or their guest become injured or have their property damaged as a result of being in your property
You may be looking at some of the scenarios that your Landlord Insurance will cover and think that it would never happen to you. However, you can’t predict what may happen in the future and it’s better to be prepared than find yourself thousands of dollars out of pocket if something happens. Also, if you have mortgage attached to your investment property then your lender will generally require that you have this cover.
Make sure you’re covered
The level of cover you have will depend on your policy so don’t assume that all risks are covered. Speak to your broker to make sure that you have the right inclusions so you have peace of mind while your property is tenanted.
GSK Insurance Brokers are one of Australia’s leading insurance brokers and we take the time to get to know your situation so you can be assured that all of your areas of risk are covered. We provide landlord insurance across Australia and will tailor your policy to suit your needs.
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