Property is a popular investment as it can provide rental return every month from tenants, plus capital growth as the value of your property increases
But just as you have insurance for your family home, it’s equally important to protect your investment property with Landlord insurance. So what is Landlord insurance and what does it cover? Here’s some easy-to-follow advice and information to help you find the best cover for you.
What is Landlord insurance?
Landlord insurance does two things; it protects your valuable asset and provides peace of mind. Depending on the policy you select, your Landlord Insurance might cover property damage, theft, loss of rent and personal liability in case someone is injured in your property.
Choosing the insurance and insurer
Your first important choice is the insurance agency. There’s a saying that you only know how good your insurance is when it comes to making a claim, so check out Google reviews and personal recommendations to ensure the insurance agency you choose is reputable. Then there’s the type of cover. Most insurance agencies will give you the option of building insurance, contents insurance (if your property is leased fully or partly furnished) or combined building and contents insurance.
Find out what's covered?
Most standard policies have certain exclusions. It’s always good to ask, and to thoroughly read the Product Disclosure Statement to see what you are and aren’t covered for. There’s nothing worse than discovering too late that you’re not covered when you go to make a claim.
When should I get landlord insurance?
If you buy an investment property, the best time to buy Landlord insurance is straight away, even if you don’t have a tenant yet. If you ever decide to move into your investment property, you will no longer be covered by your Landlord insurance and will need to swap to home and contents cover.
What are the benefits of landlord insurance?
The main benefits of Landlord insurance is that it minimises risk for everyone, and provides peace of mind. If repairs need to be done to your property, Landlord insurance will make the process smoother and faster. If a tenant defaults on a rental payment or payments, you can make a claim quickly rather than chasing the rent for months or even years, sometimes via costly legal avenues.
