Protecting your property from reasonable risks is something that every landlord should do. However, many who purchase an investment property may not think about taking out Landlord Insurance – and may not necessarily see its value until too late.
Typically, home insurance policies will cover you for damage as a result of a destructive storm, fire and other natural disasters. However, when you rent your property to another person, the property is not always treated the way you would treat your own home. This is where it’s important to understand the policy differences between home insurance and landlord insurance.
There are generally two notable exclusions that make a standard home policy not suitable for rented properties:
It is also important to understand whether your Landlord Insurance policy covers you for a building and contents component as well. Some landlords only choose to protect themselves against rent default or tenant damage and don’t realise that their contents are not insured should a tenant steal the hot water heater or stove when they vacate the property.
A Landlord Insurance policy can provide coverage for:
Below are examples of the types of claims that may (as per the policy terms and conditions) be covered by a Landlord Insurance policy:
Unfortunately, while there are people who make excellent tenants, there are also disrespectful people who may cause you costly problems. Landlord Insurance protects you and your property from potentially unforeseen risks.
In addition to this, your Landlord Insurance premium may be tax deductible, so it is worthwhile speaking to your accountant about your circumstances and how to potentially claim the premium expense.
There are many Landlord Insurance policies available to you depending on your requirements so it’s best to talk to one of our Account Managers to determine what’s right for you.
For any enquiries regarding Landlord Insurance policy and coverage, please get in touch with the team at Planned Cover today.