What Is Landlord Insurance & What Does It Cover

While most kinds of insurance – car, health or even pet – are pretty self-explanatory, landlord insurance isn’t as straightforward.

Landlord insurance is a type of insurance designed specifically for people renting out a property to tenants.

It bundles up the regular cover offered by a home insurance policy, with the additional cover that relates to investment property owners. It can cover contents belonging to the landlord in a property, depending on the policy.

What is covered under landlord insurance?

Landlord insurance can provide cover for a range of different events, from the usual home insurance inclusions for fire and natural disasters to incidents related to a tenants’ lease, including theft, malicious damage and vandalism, loss of rent due to tenant default and legal expenses required to evict a tenant.

It’s possible to get building-only or a policy that also covers contents belonging to the landlord, like carpets, blinds, dishwashers and removable air conditioning units.

Why you should get landlord insurance?

Taking out landlord insurance should be a no-brainer for landlords across Australia for a number of reasons.

1. For peace of mind - An investment property is a big responsibility and taking out landlord insurance is one way to have some peace of mind that you’re covered should things go south with your tenants or there is damage to the building.

2. To protect against tenant issues - Landlord insurance incorporates the protections that exist for a homeowner, plus the extra risks incurred by a landlord that would not otherwise be covered, such as protection for:

- Theft or burglary by tenants or their guests;
- Malicious damage or vandalism by tenants or their guests;
- Loss of rent due to tenant default and;
- Legal expenses required to evict a tenant

3. Because it’s tax-deductible - along with a number of other expenses associated with having an investment property, landlord insurance premiums are tax-deductible.

How can landlords find the best cover?

As with any type of insurance, shopping around is the key to getting the best cover. While it’s crucial to check off a few key items in potential policies – such as the terms and conditions, what is and isn’t covered and the excess – there’s generally plenty of “wriggle room” in the actual pricing.

 

 

Disclaimer: This blog post is not to be considered legal advice. If you are seeking specific legal advice we suggest that you consult a legal professional before making any significant decisions in this regard.

 

Reference: realestate.com.au