According to Finder.com.au, a landlord in insurance costs an average of $208 per month for a property worth $1 million. This amount can increase or decrease depending on the value of the property. Once it’s tallied up for the year, your landlord insurance will probably be one of your larger ongoing expenses (if you haven’t had to make major repairs).
So, is it worth having landlord insurance? The answer is…absolutely!, especially when you think about the value of the asset you’re insuring and the potential scenarios where landlord insurance can provide cover.
In this article, we outline what scenarios landlord’s insurance may cover.
When your tenant’s circumstances change
You may have experienced this when the COVID-19 pandemic hit. If your tenant’s circumstances change, they may not be able to pay their rent or they may not be able to look after the property as well as they always have. Depending on the conditions of your landlord insurance policy, you may be able to claim cover for loss of rent, property damage (accidental or deliberate), content’s cover for belongings provided by the landlord, and the cost of taking any necessary legal action against the tenant. For short-term and holiday rentals where the vetting process may be less detailed, landlord’s insurance can be particularly important.
Accidents and natural disasters
In the event of an unexpected natural disaster or a significant accident that extensively damages the property, landlord’s insurance provides a safety net to ensure necessary repairs can be carried out and mortgage payments continue. This may cover events such as major water leaks and broken pipes, fires, floods, and cyclones.
Damage caused by pets
More tenants are choosing to have a pet today. And while many are cute, pets can cause damage to floors, walls, door jambs, and skirting boards, cupboards, and gardens….plus a lot more. Some insurance policies have responded to this trend and now pay out larger benefits for damage caused by pets. Make sure your policy provides the level of coverage you need if your tenant has or decides to get a pet.
Do your research and speak to an expert
Make sure you speak with an expert about the landlord’s insurance you need. You’ll need to check your policy covers all of the potential scenarios you’d like to insure against, the process and ease of making a claim if needed, and the level of support provided after you need to make a claim. These factors may also influence your policy premium, so it’s important you pick a provider that will give you the level of service and support you need in the event you need to make a claim.
Get the right team around you to support your property purchase and make an informed decision. Let us help you secure YOUR dream home or investment property. Book a FREE no-obligation call with an Essential Property Wealth Expert today and take advantage of this dip in property prices while you can!
If you need assistance with your landlord’s insurance contact a Landlord Insurance Specialist today.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.
