Rental property insurance is an important purchase that an investor should make. It only costs so much annually but a landlord can be covered for almost every risk, including building damage, contents, theft, and rental default.
Many investors have found out the hard way that it pays to have the right insurance cover for a rental property. You can be footing the bill for massive repairs after a flood or storm. You can also be without income from rent if the property becomes damaged and unfit for occupancy.
At Landlord Insurance HQ we provide the best rental property insurance estimates so you can compare the key features of insurance products from various insurers in Australia.
Shopping for Landlord Insurance
While you are shopping for landlord insurance it is important to have a list of what you should be looking for.
One essential element whenever you buy insurance is to ensure an adequate level of cover. Rental property insurance estimates will vary from one insurer to the next, with some costing only half. At the same time, service and benefits will also vary greatly. You must understand when and how to make a claim, what the claim requirements are and what would happen in a worst case scenario.
Be sure to get cover for essential events such fire, earthquakes, storms and floods. Australia and New Zealand have not been spared from natural disasters and they can strike anytime.
Check also cover for buildings as a good policy should provide protection for the structure of the property as well as gas/plumbing, fixtures and fittings, pipes, cables, blinds, awnings and other external structures. Insurance can cover you for partial or complete destruction, damage left by tenants whether accidental or malicious, and loss of rent when your property is unfit for occupancy. Depending on your insurer additional premiums may be charged.
Rent default is one essential element of landlord insurance and it protects you against loss of rent. Again, policies differ depending on the insurer but in general you are protected against:
Eviction of tenant by a court order
Death of tenant
An insurance cover may kick in after a certain number of weeks or it could incur an excess charge, so it is critical to get a rental deposit. Claim limits also differ depending on the insurer. Adequate cover will ensure that you are not of pocket under certain circumstances, including if your property is maliciously damaged by your tenant and has to be renovated.
These are but some of the essential elements that should be included in your shopping list for landlord insurance.