- Understanding Home And Contents Insurance
- Your Guide To Renters Insurance
- A Home Owner’s Guide To Home And Contents Insurance
- Home And Contents FAQ
- Contents Insurance Explained
- Landlord Insurance Explained
- Claiming Home And Contents Insurance
- Home & Contents Queensland
- Fire Insurance
- The Average Value Of Home Contents
- The Best Home & Contents Insurance
- Smart Homes
What Is Landlord Insurance?
If you’re a landlord, you may be a little sceptical about this landlord insurance thing. After all, you may be wondering what is landlord insurance?
Your property is an asset you’ve worked hard to purchase. You want that asset to work hard in return and earn you a rental income. Having landlord insurance protects you financially against the risks that come with renting your property out.
What’s the difference between landlord insurance and building insurance?
Building insurance covers you for the structure of your property in the case of damage caused by events such as fires, explosions, storms, floods and earthquakes. Landlord insurance is a little more complicated, and insures you against loss of income or damage to your property while renting it out to tenants.
What does landlord insurance typically cover
Some of these risks may include:
- Theft or burglary by tenants (or their guests)
- Damage to building or permanent fittings and fixtures caused by tenants (or their guests)
- Loss of rent due to a tenant defaulting on rental payments (this is especially important if you’re relying on rent to pay your mortgage repayments)
- Legal expenses associated with tenant disputes
- Damage to permanent fittings and fixtures caused by explosion, flood, or fire
- Loss of rent if property becomes uninhabitable due to repairs from an insured event
Questions for your insurer
Insurance policies vary in value. And the fine print of each policy will be very different, so it’s important to ask your insurer the right questions and combe through the inclusions and exclusions carefully.
When shopping around, keep the following questions handy:
- Are there limits on the amount I can claim when a tenant fails to pay rent?
- Is malicious damage caused by tenants or their friends included under the policy? (Some policies only include accidental damage)
- In the event of flood or fire damage, am I also covered for loss of rent during repair works?
- Will I get reimbursed for re-letting expenses if a tenant has to be evicted, or they break their lease agreement?
- Does the policy include professional tax audit fees?
- Are there restrictions on claims for legal expenses in the case of tenant disputes?
Your property – taking out a tailored insurance policy
The thing about landlord insurance is it works best when your policy is tailored to your property – i.e. you’re covered for the risks that pose the greatest threat. Every property presents different risks.
To identify your insurance needs, consider the following questions:
- Will I be renting out to long-term or short-term tenants? (If you intend to rent your property as a holiday let, you may have specialised short-term rental insurance requirements)
- Will I rent my property out furnished or unfurnished? If you choose the furnished option, you’ll need to find an insurer who can incorporate contents insurance into your insurance package
- Is my property located within a flood, fire or tsunami zone? (You can call the local council to find out, or the insurer may be able to check for you. Either way, make sure you take out a policy that protects you against loss of income and damage caused by such events)
Getting the best deal for landlord insurance
As with any important purchase, it pays to shop around before you commit. Each insurer will ‘package’ the costs and benefits up differently, and the cheapest policy may not necessarily give you the best value for money.
At iSelect, we do the homework for you. We listen to what is important to you and present you with available policies. You’ll be able to compare policies side by side and gain complete transparency into what you are and are not covered for. Start comparing landlord insurance policies today and get the right cover for your needs.
You can compare online or give us a call on 13 19 20.
Getting the best value out of your landlord insurance policy
A successful rental property is managed like a business. That means being professional, maintain your property, keeping records and having adequate insurances in place so you get the financial protection you need.
To get the most out of your landlord insurance policy, it’s worth considering a few simple tips:
- Get insurance before renting out your property. You’re entering the unknown with a new tenant, so you want to have insurance in place to have protection just in case.
- Conduct regular inspections. You want to know your tenants are looking after your property. If they’re not, you need to identify issues before they escalate.
- Keep detailed reports (including supporting photographs). This way, you’ll be able to back up your arguments for making a claim.
Looking for the right landlord insurance policy?
Comparing policies on your own can be time consuming and frustrating. At iSelect, we make it easier to compare policies and find the right one for you. Start comparing landlord insurance policies online, or call us today on 13 19 20.
iSelect does not compare all products in the market. Not all products are available at all times.
iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. We receive commission for each product sold.