Why do you need Landlord Insurance?
Owning an investment property should be a rewarding experience, but tenant trouble or plain bad luck can turn it into a drama if you don’t have the right insurance cover.
From the day your tenant moves in, both you and your Property Manager are restricted in how and when you can control them. Life events affecting them, such as job loss or illness, can lead to their defaulting on rent or abandoning the property. And even if you have the perfect tenants, events like storms, earthquakes, fire and burglary can damage the home and contents.
The right Policy can be designed to help investment property owners to avoid costs that can undermine the value of your investment, like lost income, repairs, legal fees and even payouts for liability damages. Look for cover in the following areas:
- Malicious damage or theft by tenants, as well as accidental damage to both building and specified contents including unauthorised home alternations.
- Unpaid rent in most situations such as breaking of leases and default.
- Loss or damages to contents (such as carpets, curtains, blinds and light fittings) by defined events including fire, storm and water damage (but not flood), as well as theft or malicious acts by intruders, drug lab clean-ups and pet damage.
- Legal Expenses in minimising a claim.
- Tenant hardship and Death of a Tenant.
- Legal liability on claims arising from injury or other circumstances on your property.
- Professional fees could be incurred by you due to a Tax Audit in respect of the income from your investment property.
Some insurance companies combine landlord insurance with your home and contents to protect you against:
- Fire or explosion;
- Storm or rainwater (but not flood);
- Glass breakage;
- Theft and malicious acts by intruders; and
- Water damage from burst pipes or overflowing sinks.
If you would like to know more about Landlord Insurance, please call the Dunn Property Management team on 02 9731 1200 and we would be happy to discuss this further.