If you own a rental property, landlord insurance is not only important, it’s necessary. Owning properties that you rent to tenants comes with a range of risks, not just from the possibility of tenant-caused damage or theft, but the risk of natural weather events and disasters and other unexpected situations. You need more than just basic coverage.
For ultimate peace of mind, make sure you and your rental properties are appropriately protected.
What is landlord insurance?
As a property investor, the buildings you own are a huge asset for you financially. You will want to be sure these properties have thorough coverage. Landlord insurance policies can cover loss or damage to your rental properties and associated buildings such as garages. These things can happen due to unforeseen occurrences such as flood, fire, and more.
As a landlord, you also need coverage to protect yourself against certain injuries or incidents which may befall tenants and their guests.
Buildings cover should protect the overall structure of your buildings, including pipes, fixed appliances, fixtures, fittings, gas and plumbing systems, and exterior blinds, among other elements. If a property becomes uninhabitable due to a fire, storm, or other incident, many landlord policies will provide coverage for loss of rental income.
Landlord insurance generally contain an option for some form of rent default cover. This protects you against loss of rent due to tenant death, failure to pay (defaulting on rent), court order eviction, and more.
Your personal landlord circumstances
If you own a rental property which is within a larger unit, you may need a different type of cover. Structural damage is usually handled by the insurance coverage held by the body corporate. In the case that they do not have proper insurance, you can opt to buy a specialised insurance often known as strata title protection which equips you with the specific cover you need. A licensed insurance broker can help you understand this in greater detail.
As a property owner, you should also assess the unique risks to your property. Is the building in a flood zone? An area where property crime is high? These can affect the type and level of cover you need.
What to consider
When selecting landlord insurance, there are a huge number of policy options on the market. Many property investors try to save money by going online and choosing the cheapest available landlord policy. This is a mistake. When it comes to something as important (and potentially financially risky) as covering your property, you must ensure the coverage you buy is not only adequate, but gives you the essential protections you need for your specific circumstances. The price of premiums for landlord insurance can vary greatly. Be sure you choose a policy which is not only affordable, but will be effective in the face of a disaster or unfortunate tenant issue.
Working with an experienced insurance broker
Don’t leave your landlord cover up to chance. Consult with a knowledgeable broker regarding your needs. Our team here at Macey Insurance Brokers is happy to assist property owners and investors with identifying the best coverage options to meet their needs. We work closely with each of our clients to ensure you feel secure and satisfied with your insurance. Get in touch today.