Landlord Insurance covers you for tenant-related losses. Things like loss of rent due to a tenant breaking their lease or being evicted, or damage caused to your contents by tenants, like drink spills on carpets. Other insurance may not cover these events, and very often, the bond won’t be enough to cover the associated costs.
Having an investment property is a risk and should have adequate insurance to ensure owners are protected. It is our duty of care to complete thorough risk assessment while processing tenancy applications and monitor situations during the tenancy, however circumstances can change at any time, resulting in excellent tenants suddenly defaulting on their rent and/or causing damage to the property.
Essential Insurance for Landlords
1. Liability Insurance – covering up to $20 million
2. Building Insurance – covering Tenant Damage, Pet Damage and Scorching to:
- Domestic fixtures and fittings, i.e. built in air-conditioners, dishwashers, garbage disposal systems, cook tops, built-in cabinetry, doors, walls, windows (and glass), tap ware, hot water systems and shower screens
- Structural domestic improvements such as paths, driveways, garden borders, your proportion of fencing, gates, retaining walls, in-ground swimming pools and spas (including attachments which fit into their filter systems),
- Awnings, pergolas, fixed rainwater tanks, solar panels and their fixed accessories (e.g. inverters), TV antennae, satellite dishes and letter boxes,
- Fixed floor coverings such as linoleum, floor tiles and parquetry, (but not carpets),
- Fixed light fittings which are hardwired to the building
3. Contents Insurance – covering Tenant Damage, Flood, Storm or Rainwater, Escape of Liquid, Fire or Explosion, Break-in, Vandalism or Theft, Pet Damage, Scorching, Impact, Earthquake, Glass Breakage, Lightning, Oil Leak from any heater, Electric Motor Burnout or Riot/Civil Commotion to:
- Portable household goods and electrical appliances,
- Household furniture, furnishings and light fittings (not hardwired to the building),
- Curtains or internal blinds,
- Manchester and linen (excluded for holiday-let properties)
- Floating timber floorboards,
- Carpets and floor rugs,
- Above ground pools or spas (including their fixed accessories).
4. Loss of Rent – covering Abandonment, Tenant Default (Rent Arrears), Failure to give vacant possession, Death of a tenant, Hardship, Untenantable property
From years of experience of dealing with Insurance claims, we have seen and worked with the best and the worst insurance providers. We are constantly left shaking our heads at the lack of care these providers show towards Owners investment properties, and the horrendous, multiple excess fees that are charged.
If you are considering changing your insurance provider, or are looking for a recommendation, we cannot recommend Terry Scheer Landlord Insurance highly enough. There is no benefit from recommending this insurance provider, other than the simplicity and high success rate we have experience with them in the past.
More information: please refer to our Landlord Insurance post