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Landlord Insurance In Australia
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As a landlord, protecting your investment property to be a low-risk and reliable asset is paramount. A comprehensive landlord insurance policy will ensure that your investment property will be a dependable income source for your future and allow peace of mind. Read on to find out why Landlord Insurance in Australia is vital.
What is landlord insurance?
Landlord Insurance is similar to home insurance, whereby it covers you for repairs or replacement costs to building and contents. However, its primary advantage is that it contains extra coverage for damage caused by tenancy issues that may arise in your investment property, as well as your legal liabilities as a landlord.
A standard Landlord Insurance policy has three components: tenancy, building, and contents cover. These three covers help protect the landlord from several perils they may encounter when leasing their property.
What does landlord insurance cover?
The areas that landlord insurance covers vary depending on your insurance provider, but generally, landlord insurance covers three areas of insurance for each property: tenancy, building and contents.
Tenant Damage
This covers damage to the property caused by the tenants.
Building Cover
This covers any damage to the property’s building structure, which can be caused by fires, flooding, any damage during a storm, vehicle collision damage, and even vandalism. Some covers include accidental damage.
Landlords Contents Cover
Similar to the building cover, the landlord contents (including carpets, curtains, lights and other furniture within the property) are covered against fire damage, flooding damage, weather damage and other events such as vandalism. Accidental cover may also be covered in this policy.
It is essential to discuss with your Macey broker to determine which perils are covered, as some insurers cover more than others.
Is landlord insurance a requirement in Australia?
Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.
Public Liability insurance is there to provide protection if someone makes a claim against the insured, the business or its employees.
A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.
Is landlord insurance a requirement in Australia?
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Despite landlord insurance not being a legal requirement across Australia, it is mandatory across almost all Australian states when securing an investment mortgage.
What is the cost of landlord insurance?
The cost of landlord insurance can vary depending on where the property is located, the size of the property and the security of the building. Each insurance provider may offer a different insurance policy, which also means they may offer a different monthly or yearly cost.
Claims examples
Rent default – Tenants default on rent and abandon the premises.
Damage by Tenants – Intentional damage to the building caused by the Tenants.
Some policies also cover Accidental damage – i.e. spilled wine on the carpet.
Water damage, i.e. burst water pipes.
Storm damage includes surface runoff water, overflowing gutters,
Fire including fire caused by Tenants, i.e. Oil caught fire on the stove.
Meth Labs – The chemicals produced in the manufacture of the drug are absorbed into carpeting and furniture and deposit residue on walls, ceilings and floors. In the worst cases, a property can be left uninhabitable, and long-term exposure to such an environment can lead to chronic health problems.
Liability claims – One of the most common claims made by Tenants are claims resulting from injury due to decks collapsing, rotten timber on walkways and stairs and faulty railings.
Why should you use a Macey broker for your landlord insurance?
A Macey broker simplifies the process of obtaining an insurance policy, saving you valuable money and time. Our brokers act as a medium between yourself and the insurance provider. As a result of their extensive training and knowledge in the field, using a Macey insurance broker throughout this process can ensure you are getting the best policy for your situation and property.
At Macey Insurance Brokers, we have been renowned insurance brokers across the Shoalhaven, Illawarra, Macarthur and Southern Highlands areas for over 40 years. If you have an enquiry about landlord insurance or wish to speak with one of our professional brokers, you can contact us via our website.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Macey Insurance Brokers, ABN 92 003 364 065, AFSL 240922
This article originally appeared on Macey Insurance Brokers Blog and has been published here with permission.
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