Most property investors recognise the importance of insuring their asset. However, it’s common for some investors to assume that because they have taken out Landlords Insurance that they are well covered by the best product available.
What you may not realise is that not only is Landlords Insurance quite specific to property investors, but also that not all policies offer the same benefits because the cover options are so broad.
When you own a rental property, there are a range of things that can impact your ability to keep generating rental income. If you rely on that continued rental income to cover your costs and expenses, it’s critical that you have the right type of coverage to protect your interests.
What to look for in a Landlords Insurance policy
While most tenants are generally respectful of rental properties, there are occasions when things don’t always go your way.
Before you choose a Landlords Insurance policy to protect your investment, take the time to ensure you have the right policy that gives you plenty of cover for a range of situations.
Some of the things to look for in a good Landlords Insurance policy include:
- Accidental loss or damage to contents caused by the tenant
- Malicious damage or theft caused by the tenant
- Loss of rent while the property is uninhabitable
- Damage caused by pets
- Legal liability to protect against the possibility of injury due to landlord’s negligence
- Tax audit
- Prevention of access to the property
- Default of rent.
Other considerations to explore and compare before signing up for a Landlords Insurance policy include:
- What are the excess charges?
- How many weeks’ rent are covered if your tenant defaults or absconds?
- Does the policy cover any legal expenses?
- Have you compared the premiums as well as the summary of benefits?
Landlord’s contents coverage
Always check your policy to ensure any contents that belong to the property are covered adequately. Most landlords automatically assume they don’t need to cover contents, as any furniture within the property belongs to the tenant.
In reality, your property contents also include items such as:
- Internal blinds or window coverings
- Light fittings
- Fixed appliances (such as dishwashers).
Be sure your Landlords Insurance policy covers you for damage or loss of your contents too.
Damage to the property caused by pets or legal liability cover might be listed as extras, but they’re both valid areas of coverage to include in any Landlords Insurance policy.
Protect your investment
Whether you are reviewing your existing Landlords Insurance policy or taking out cover for the first time, it’s worth shopping around and comparing the premiums and summary of benefits for several policies to find the one that’s right for you. When it comes to protecting your investment property, doing your due diligence before signing up can save you time, money and heartache down the track.
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