What does landlords insurance cover?
What does landlords insurance cover?
Landlords insurance can cover against a variety of issues, giving broad protection for investment properties. In a nutshell, it can cover the cost and loss of earnings resulting from natural disaster, damage or tenants not paying rent. Claims commonly result from property being damaged by tenants, destroyed by fire and other natural disasters, and tenants defaulting on rent or other costs. In such cases landlords are extremely thankful for having taken out insurance. Landlords have many considerations when it comes to safeguarding their income from property. The exact inclusions of policies vary depending on what is chosen as relevant for the particular property, situation, location and application.
Buildings and contents damage
Natural disasters and damage to buildings can be extremely costly. Various scenarios are covered under landlords insurance, for example:
- Fire, explosion or lightning
- Earthquake and tsunami
- Burst pipes and overflowing tanks etc.
- Accidental glass breakage
- Malicious damage by third parties, tenants or their visitors
- Theft or damage due to theft
- Riot or civil commotion
- Motor burnout in household electrical machines
- Impact (such as a car hitting the building)
- Accidental loss or damage
- Legal liability
- Rebuilding due to building loss or damage
- Water or liquid damage
- Damage caused by tenants pets
An example of a recent claim for damage under a landlords insurance policy is when an air conditioning unit in an apartment got damaged. The landlord provided a repair quote and report, and the costs were reviewed and paid out within just four days. The landlord was extremely happy. The speedy payment was made possible because ii-A provides a claims checklist listing all documents required, so that claims reviews are not delayed. Another claim example resulted in a $11,140 payout when a landlord claimed under loss of rental income after malicious damage to his rental property, and his tenant stopped paying the rent.
Rent default cover
‚ÄòRent default' cover is an optional extra cover for when a tenant stops paying rent or fails to pay for other costs that aren't covered by the bond. An example of a situation that was covered under the rent default was when a landlord had a claim for tenant default totalling of $5,826 for the missed rent. Protecting property owners assets and earnings As the examples above illustrate, it's well worth having cover for such incidents as a landlord, as the potential value when things go wrong is enormous. Getting a broker's assistance for a tailored policy that covered only what's relevant is most important. There are many policies on the market but ii-A always provide coverage options based on the client's needs not just one product for all clients. Making claims easy At ii-A we are known for our outstanding service when claims arise. We make the process for our clients as easy as possible and liaise with real estate agents to obtain information, organise assessments and finalisation of claims so that our clients are not stressed out by the process. A good broker will make sure that when it's time to renew, they do a full annual review on each policy and never just auto renew. And that's just how we operate at ii-A.
Speak to an expert
We manage a large portfolio of landlords insurance policies that gives us the ability to get good pricing for our clients. We can insure properties of all kinds all around Australia. Get in touch today for a chat about your options. 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 suitable 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.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Polina Kesov.