Landlord insurance policies take into consideration the risks you face as a property owner and investor and not necessarily as a resident. Landlord insurance also covers the property owner for tenant-related risks that are not covered by home insurance or body corporate/strata fees.
It is wise to consider the location of the investment property when taking out insurance. For example,properties located in disaster-prone areas are at higher risk of damage and without an effective insurance policy in place, property investors could face significant costs out of their own pockets.
Typically, a landlord insurance policy will cover:
- Theft or burglary by tenants, their guests or other burglars
- Malicious damage or vandalism by tenants or their guests
- Loss of rent due to tenant default or breaking of the lease
- Legal expenses required to evict a tenant
- Damage caused by disasters such as floods, storms, fires
Other inclusions to consider are:
- Damage caused by a tenant’s pet
- Public liability cover for injury to someone visiting your investment property
- Rent loss due to an insured event, such as a tenant defaulting on their rental payments the death of a sole tenant or the eviction of a tenant by court order
- Re-letting expenses after a claim on rental loss
- Removal of a tenant’s goods after a claim on rental loss
- Change of locks after a claim on rental loss
- Eviction of your tenant by court order
- Unexpected death of tenant
- Default (your tenant refusing to pay rent)
Meanwhile, common exclusions include:
- General maintenance expenses or the costs of repairs by the tenant
- Rental income due to not having a tenant
- General wear and tear
Stacey Lee Realty has experienced Property Managers to handle the task of maintaining your investment and ensure your investment is working for you with minimal hassles. Call us today at 07 3399 2966 or visit www.staceyleerealty.com.au