Landlord Insurance

As a landlord you place an incredible amount of trust into your land agent to get it right when selecting and reviewing the type of tenant that is allowed to inhabit your investment property. Even with the best screening techniques incidents can and do happen all over Australia on a daily basis. Your asset is worth protecting properly, this is where the landlord insurance policy has been specifically designed for your needs.

There are six sections to a landlord’s policy:

Building Cover -

Most policies cover the main dwelling plus any other domestic use garage, outbuildings, walls, gates, fences, driveways, verandas, patios, in-ground swimming pools and any landlords fixtures and fittings such as stoves, built in air conditioning, kitchens, stoves etc..   Ensure that your sum insured covers the cost of the current rebuilding value plus costs associated with removal and dumping of the damaged property and any other professional costs associated with rebuilding (such as architects, soil tests, application fees etc..)  

Contents cover -

Covering the cost of replacing furniture, carpets, curtains, internal blinds etc. Note that the definition contents will change from policy to policy and some items may or may not be covered by the building section.  

Damage or theft caused by tenants –

Cover for your loss or damage to building and / or contents at the situation caused by a deliberate or intentional act by a tenant. This will generally include larceny, theft, malicious damage or vandalism.  

Tenants rent default –

If a tenant defaults on the payment of their rent, vacates the premises - leaving them unfit for occupation,  vacates without notice prior to their lease expiry date or is legally evicted from the situation, then cover is generally available under this type of extension.  

Loss of rent –

When a building, insured under a landlord’s policy, is damaged and cannot be inhabited then this extension to cover will pay the amount insured for the weekly rent that cannot be charged on the property.  

Legal Liability -

This covers you should you be responsible for another person being injured or if they have any of their property damaged while on your property.  

It does NOT cover other people who work in or on your home, such as cleaners, gardeners, builders or plumbers. These people should have their own business liability insurance policy to protect them for the damage they may do to your tenant or your property. 

In the event of a claim  

Contact your insurance broker as soon as practical. You will be asked to;

        •  Complete a claim form
        •  Provide proof of ownership in the form of receipts, manuals, pictures
        •  Obtain a quote to repair (if possible) or replace the items.  If the items 
            are unrepairable this should be confirmed in writing by a repairer

Contact your nearest broker to enquire further about landlord’s insurance or to obtain a quote for your property