If you own an investment property – it could be a rental, or a holiday home, this insurance is for you.
Landlords insurance protects both your building and contents from risks such as
Fire or explosions, Storms and Flood and Burglary to name a few. Also, you may experience that your tenants have maliciously damaged or vandalised your property, broken a lease and subsequently triggered loss of rental income.
It is valuable to have cover to safeguard your investments.
There are often exclusions, deductibles, limits and optional covers which apply, so contact an Avoca Insurance Broker to discuss your specific insurance needs.
It is important that your building sum insured reflects the replacement (rebuilding costs at today’s prices) cost for your building. Choosing the right sum-insured for your property and contents is important. Should the worst happen and you have undervalued your assets, you may not have enough financial capacity to rebuild or replace all of your belongings. Please note some insurers may apply an under insurance clause for partial losses if you are under insured. If you are unsure, below are links to easy-to-use calculators which can estimate the value of your home and its contents quickly and accurately.
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If you own an investment property – it could be a rental, or a holiday home, this insurance is for you.
Imagine if the property was damaged or destroyed by fire. Without insurance, your investment income would go up in flames.
Also keep in mind that, if your investment property is financed, your financial institution may request to see proof of insurance for the property.
Two of the key potential issues covered by landlords insurance are Loss of Rent and Rent Default. The definition of these issues are understandably sometimes confused, as the meanings and wording are similar. Below are explanations of each and what is covered.
This covers for loss of rental income resulting from damage to the building.
Loss of Rent covers you for lost rental income should your property become uninhabitable by the tenant due to fire, flood, serious building damage or other major issues with the property.
Rent Default is where the tenant stops paying rent.
This is understandably important on the list of landlords' concerns. In the majority of cases, payment default happens when the tenant's income is stopped or reduced due to an unforeseen event such as losing their job, sudden expenses, divorce, or illness.
While choosing reliable, responsible tenants is important, anyone can come under hard times unexpectedly and this cover-type insures for just that.
The costs of repairing building damage or deliberate malicious damage left after tenants vacate a property would also be covered under rent default cover.
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