What should you look for in a landlord insurance policy and why might you need one?
Most tenants are good people who pay their rent on time each month and look after your property as if it were their own, but there is always a risk that a problem tenant could move in and stop paying rent, be careless with informing your property manager of maintenance needs, or worse, wilfully damage your property.
You need a special insurance policy to cover you for the sorts of things that can go wrong when you own an investment property.
Landlord Insurance covers you for things like:
•Loss of rental payments due to your tenant’s default
•Loss of rental payments during a vacancy period while malicious damage inflicted by your tenant is repaired
•Burglary or theft of fixtures by your tenant or their guests
•Legal costs associated with the eviction of a unacceptable tenant
How would you manage your mortgage repayments if your property were so badly damaged that it took 3 months to complete repairs? For many investors, such an event would lead to significant impacts on their cash flow as well as their ability to meet other financial obligations.
A good quality Landlord Insurance policy protects you against the sorts of eventualities that general home and contents policies do not.
Obviously price is important but, as with most things, you get what you pay for with insurance. Canstar Blue says that its 2016 star ratings found that Landlords renting in Sydney were generally only paying 1.5 per cent of their rental income on insurance.
Let us know if you need information about the types of Landlord’s Insurance policies out there. We can talk you through the sorts of inclusions and exclusions that are important, so you come to an informed decision more quickly.
For more information contact our Business Development Manager Jade Young on 4933 5544 or via firstname.lastname@example.org today!