If you’ve just bought your first investment property and are recovering from the costs associated with that, landlord insurance might be the last thing on your mind. But it shouldn't be. Read on to learn why you need landlord insurance.
Not only is finding a good tenant important, but so is insuring against possible damage to your property.
Your tenants could be the best in the world, or friends, or even family, but they could still cause unintentional damage to your property.
Landlord insurance can provide you with protection against that, and depending on the options you chose, it could also provide you cover for the following.
Loss or damage by a tenant or their visitors
Damage caused by your tenant, or even their visitors, or even their pets could be covered by some policies! This relates to things like accidental breaking of windows or vehicle impact and some water damage. Malicious damage by tenants or their guests can also be covered.
Loss of rent
This will cover you for rent lost if your property becomes uninhabitable because of loss or damage to the building or contents. This could even cover you for a short period of time in the case of a deceased tenant.
Rent default or theft by a tenant
This will cover you if your tenant breaks their contract, is legally evicted or stops paying rent. You may need to use up your bond first and there could be a limit on how long the policy will cover you for. Theft of any part of the buildings or contents, as defined by your policy, will also be included in this cover. Legal costs of evicting a tenant or theft by a tenant may also be covered up to a certain amount.
Make sure you read the fine print of the product disclosure statement of any policy you look into. All the issues mentioned above are included in, or are options on, the CGU policy that is offered through YourShare.
