Being a landlord is never an easy job, especially when it comes to selecting and managing tenants.

While the landlord or real estate agent may have properly assessed and reviewed a tenants credentials before approving them, accidental damage, theft or malicious damage events can still occur.

Therefore it is vitally important that you obtain a comprehensive insurance policy that covers buildings, contents, rent default, loss of rent, legal liability and any tenant theft or malicious damage. Putting a strong cover in place from the get go can ensure peace of mind for landlords in the long run.

Outlined below are the various sections of a landlord insurance policy.

Building cover

Under this section cover is for the main dwelling and any other domestic-use outbuildings, such as a garage or storage buildings. In addition, walls, gates, fences, driveways and outdoor living areas – like in-ground pools and patios – should also be covered.

The sum insured should make allowance for the cost of rebuilding plus any associated removal of debris costs and professional fees (engineers, soil testing, architects etc)

Contents cover

Similar to a standard home insurance product, this should cover any damage to furniture, curtains, internal blinds and carpets. It pays to be extra careful when considering this cover, as certain policies have a different definition of what ‘content’ means.

Damage or theft caused by tenants

This cover focuses on damage caused to the building or insured contents by the tenant. Key areas of cover include larceny, theft or malicious damage.

Loss of rent or Rent Default

When the building is damaged by an insured event and cannot be rented out, the policy will cover up to the weekly rent sum insured to help you maintain a consistent cash flow. Cover can also be extended to include rent that is lost due to tenants breaking the conditions of their lease by vacating the premises early.

Legal Liability

This cover is designed to insure against third parties property being damaged or personal injury that may occur to others at the insured situation

If your in the market for Landlord insurance, have a chat to MGA Insurance brokers first, to find out about how to best cover your investment.