What is it? Should I have it? What to look for when choosing a policy? So many questions to consider!
Michelle talks about Landlord Insurance here.
What is it?
Landlord Insurance is really about protecting you as an Owner for the more common risks that may arise when renting your investment property to tenants. These include:
- Rent Default
- Legal costs associated with obtaining possession if a tenant does not vacate the property
- Rent reduction if something goes wrong with the property
- Accidental damage
- Death of a tenant
Should I have landlord insurance?
While we are not financial advisors and always recommend you seek the advise from your accredited advisor, we are in the business of managing the risk and reward from your investment property so our opinion comes from this perspective! Obtaining Landlord Insurance is something that we always recommend to our landlord clients.
Insurance is one of those things that you don’t need it for many years until something goes wrong and then that one rainy day you do end up relying on it. In fact if things go badly wrong a Landlord Insurance policy may be the difference between your investment property making or costing you money in one year.
What do I look for when choosing a policy?
Price – an important factor when managing the return on your investment.
Special Conditions about your property – for example if your property is furnished are there special clauses in the policy that apply? If you have allowed pets in your property does your Landlord Insurance cover accidental damage from pets?
Look out for the excess on common things like scorch marks (hot iron on the carpet or hot pot from the stove burns the kitchen bench)
We think that the best approach is to get few quotes including one from your current insurance provider. In our experience we generally recommend a specialist provider for Landlord Insurance such as Coverwise or Terri Sheer. In the past the coverage, excess amount, terms and price of the policy have been the best fit for our clients.
If you would like to speak with a specialist about Landlord Insurance don’t hesitate to reach out and we can connect your with an expert.