Rental insurance is a must for everyone. It is important to understand that when it comes to natural or man-made disasters, no amount of damage will discriminate between tenants and owners. While many believe that this type of insurance is largely targeted to landlords as a means of protecting them from excesses on their home insurance coverage, residential, commercial or industrial property renters are actually given the same level of protection. So it seems the line that divides between landlords and tenants is not that blurred after all, insurance-wise.
Renters of apartment units, commercial shops or industrial complexes are not in any way covered by their landlord’s insurance policies. While the building and subsequent fittings therein are protected from damage or loss by virtue of a property owners insurance policy, all other possessions therein, like furniture, electrical stuffs, clothes, goods for sale, and other valuable belongings, owned personally by a tenant (you) will rest largely on your shoulders to protect.
It is important to remember that when disaster strikes, tenants most often lose their belongings and miss out greatly on compensation. Landlords are not in any way responsible for replacing their losses and this is where a sound rental (or renters) insurance come in. From fire to burglary to other accidental loss or damage, this insurance policy will cover your losses. It also provides protection to tenants in the event that fixtures and fittings of their rented property get accidentally damaged or when legal liability sets in. Depending on your insurer, such policy also helps protect your valuable possessions when moving from one property to another. All it needs is for a tenant to determine a “ballpark” estimate on their possessions total value. Doing so will require them to carefully itemize possessions to be insured along with the value for replacement cost.
Landlord or Property Owner’s Take
On the part of the landlord, rental insurance provides another layer of safety net for their property. A building and contents insurance policy usually covers landlords from potential risks brought by catastrophes and natural disasters. In most cases, such policies may also include protection for fixtures like carpets and loose floor protection, lights and fixtures, ovens and stovetops, windows and awnings, and other furnishings fixed to a property. It also protects from damages caused by tenants and guests, or theft and other malicious damage.
Landlord rental insurance, however, can be arranged specifically by an insurance broker to address additional clauses like missed rental payments or when damage to a property has left it hard to lease unless repairs or replacement be done. There may even be cases when court procedures release a tenant from the burden of paying rent to your property leaving you financially distressed. Think of an apartment renter who suddenly falls ill due to a serious disease or a commercial property tenant who went bankrupt. Aside from covering missed rental payments, the same policy may also be crafted to cover your legal expenses when suing an unscrupulous tenant. In some cases, such policy may even cover replacement of locks when tenants vacate the property without returning the keys.
Many Australians today invest in second homes and then, rent them out for short-stays. Rental insurance for landlords on this type of property investment is deemed of utmost importance. A broker can help arrange an insurance policy to cover this unique situation to ensure that your property as well as the contents and rental income from it are virtually protected.
Need help on what rental insurance policy to pursue? Schedule a consultation with Landlord Insurance HQ by calling 1300 815 344. You may also request a quote online from our website. We are here to tailor-fit an insurance portfolio to satisfy your needs.