Insurance is the definition of a ‘necessary evil’. No one loves to deal with it, but landlords need to protect their investment and make sure they are happy and comfortable with their cover.
Insurance is important and can be complicated, but it’s always better to be safe than sorry.
We make sure that our landlords have adequate insurance just in case there comes a time when a claim needs to be made.
Here are some insurances all landlords should consider:
- Landlord Insurance
- Building Insurance
- Contents Insurance
Landlord Insurance is a must have. Many providers offer this type of insurance as an add-on to existing policies. This may sound adequate, but we have found that insurance companies can charge a large excess to claim.
Taking out Landlord Insurance with a dedicated Landlord Insurance company is a good idea. Landlord policies should cover loss of rent, legal fees, theft and malicious damage of up to $20 million and contents of $50,000. The premium for landlord insurance is surprisingly low and is also a tax deduction.
Building Insurance is a necessity because it covers you for roof, walls, ceilings, floors, doors, windows, fitted kitchens, built in cupboards and bathrooms. You should also make sure that it covers you for external fixtures such as garages, sheds and pergolas. A standard building insurance policy should cover the full costs of repair / replacement in case of fire, lightning strike, storm damage, falling trees, explosion, earthquake, vandalism, vehicle collisions and burst pipes.
But please, always check with your insurer and you must let them know that your property is now occupied by a tenant.
Many landlords believe that building insurance will cover for items such as light fittings, window treatments, dishwashers etc. but that may not be the case. We have found that additional contents insurance is required to cover these items. Be safe, and check these specifics with your insurance company.