Ask many property owners about landlord insurance and you are more than likely to be greeted with a grunt. For many Australian property owners (landlords), such a topic is overkill. They think that comprehensive home insurance has all their bases covered up until a tenant fails to deliver rent or an eviction has gone horrendously wrong. These responses, however, show a common form of incredulousness. Many believe that home insurance or strata building insurance has all their bases covered until it’s too late.
Australians generally have little known risk pertaining to landlord protection. The vast majority are under the impression that as landlords, added insurance for their protection is a waste of resources. Some of the most common misconceptions are:
It’s just added expense
Landlord insurance is deemed an added expense by many property owners. The first thing that comes to mind in all things “insurance” is the amount it will add to their business cost. Aside from that, many also tend to overestimate the cost of premiums without even realizing the amount saved from certain issues that may creep up. A rental or eviction dispute, for instance, can incur a cut to your income on legal fees alone. With landlord protection insurance in place, you can have a safety net to assist in this particular need.
A home insurance policy is enough
Under close examination, your seemingly airtight home insurance or strata insurance policy may prove to be lacking in many aspects. Some external structures as well as shared areas are often not covered. So any injury or accidents that may happen on these areas will most likely be shouldered by your insurance policy. A tenant with financial issues may also default on rent, leaving your net proceeds hanging in the balance. An added problem to handle such as this may not be covered then also leaving you with the financial burden to bear on your shoulders.
Banks and financial institutions as insurers deliver more benefits
Many rental property owners tend to believe that banks or their mortgage company’s offer of added insurance may be more beneficial to them. Unfortunately, insurance plans from these institutions tend to be generic or riddled with limitations. Certified brokers from third party insurers like Landlord Insurance HQ, for instance, can tailor-fit your policy to address all the risks involved.
Only big-time rental properties need landlord insurance
Whether you own a single-door apartment or a multi-tenanted building, the main goal of insurance is to give you a safety net. Premiums and coverage may differ from state to state but the protection entitlement remains constant. At some point, you may have to face rental default issues or perhaps, a wrongful eviction may bring more legal expenses. Protecting from the loss of rental income or any other provision will definitely cover even the simplest of owners renting out a hard-earned property.
Very few property owners enjoy power-packed protection from undue distress, financial or otherwise, due to such misconceptions. Regardless of the risks involved, it is still wise to invest in landlord insurance to protect yourself particularly in high-risk cases. The key is to find a reliable insurer who can customize a policy that will address all your needs
Want a recognized leading broker on landlord insurance? Schedule a consultation with Landlord Insurance HQ. Learn more about their customizable insurance portfolio by requesting a quote online or calling for a discussion on 1300 815 344 today.