Landlord Insurance FAQs
Navigating the realm of landlord insurance is crucial for investors, as unforeseen issues can jeopardise rental income. Various risks, such as unpaid rent, malicious damage, accidental damage, and legal liability, highlight the importance of choosing a comprehensive insurance policy tailored to your landlord needs.
Covered Risks:
1. Loss of Rent: Protection against income loss due to unforeseen circumstances.
2. Accidental Loss or Damage: Including incidents like storm damage or bushfires.
3. Malicious Loss or Damage: Coverage for intentional harm to the property.
4. Tenants Abandoning the Property: Safeguarding against sudden tenant departures.
5. Illegal Use of Property: Protection in case the property is used for unlawful activities
Contents Insurance:
For furnished properties, consider additional contents-only insurance to shield furniture, electronics, and possessions from damage, loss, or theft.
Building Insurance:
Coverage for complete or partial destruction and loss of rent during periods of uninhabitability. Notify your insurance agency if the property will be rented out.
Exclusions:
Landlord insurance typically doesn't cover market conditions, decrease in rent revenue, tenant-owned contents, mould damage, fair wear and tear, and planned expenses like maintenance.
Choosing an Insurance Policy:
1. Tenant-related Risks: Check if the policy covers tenant death or defaults on non-fixed term agreements.
2. Excess Amounts: Understand the excess charges per claim and check for any caps on total claims.
3. Multiple Property Discount: Inquire about discounts for insuring multiple properties.
4. Claim Approval Process: Clarify whether claims are approved by the agent or an underwriter, affecting claim processing time.
Body Corporate and Strata Titled Property:
Note that Body Corporate may only cover the building and common areas, excluding unit contents, unpaid rent, or legal liability.
Recommended Insurance Companies:
Consider reputable insurance providers such as EBM-Rent Cover & Terri Scheer for your landlord insurance needs.
If you have any further questions regarding investing please feel free to get in touch with Next Level. You can contact us either by calling 0402 866 885 or sending an email to info@nlproperty.com.au. We are here to assist you and are eager to provide any additional support you may need.
