Investment tips: How landlord insurance can keep you protected

By the resi financial blog team, 28 April 2014

Should I get landlord insurance?

There's plenty of moving parts to keep track of when you decide to enter the property investment market.

You'll likely be concerned with obtaining the best variable home loan rates Australia has to offer, not to mention focused on finding the right tenants to rent your home to.

However, one factor you don't want to overlook is the need for landlord insurance.

What is landlord insurance?

As the name implies, landlord insurance is a form of cover that keeps your investment property financially protected. Allowing others to live in a home you own is always a risk, regardless of how thoroughly you vet your tenants.

A landlord insurance policy can work in much the same way as the home and contents insurance you may have for your own home. This will provide you with money for the replacement of damaged items or the cost of repairs.

In addition to accidental damage caused by tenants, certain landlord insurance policies can also keep your investment financially protected from natural disasters, such as fire and storms.

Exploring your options

However, unlike standard home and contents insurance, landlord policies come with plenty of options for specific threats you may need protection against.

For instance, additional cover may be added to your policy that will provide defence against rent default. While no investor wants to think their tenants may run out on the bill, it's a harsh result that may occur.

If your tenant vacates the premises without notice or refuses to pay rent, this type of cover can give you the monetary coverage you need while the problem is resolved.

It's also important to consider your liability as the owner of the property. If someone slips and falls on a property you own, you could be held liable, so it's important to work with a provider who can help you with this.

Categories: Property Investment