You never know when you might accidentally accept a ‘tenant from hell’. Whether they fall way behind in rent or cause damage to your property, tenants can cause a lot of headaches. Luckily for you, landlords insurance can be your saving grace when a tenancy goes pear-shaped. To give you the 101 on landlord insurance and why you need it here’s iThink’s Director of Marketing and Business Development, Kylie Walker.
WHAT IS LANDLORD INSURANCE?
Landlord insurance is a type of insurance that protects you from some of the most common risks that come with property investment. It’s different to home and contents insurance as those policies will typically cover you for things like storm and fire damage, theft etc. but usually won’t include items such as rental default or damage from a tenant.
WHAT DOES LANDLORD INSURANCE COVER?
There are a number of things landlord Insurance covers but some of the most common includes, rental loss, malicious or accidental damage and water damage.
Even tenants who have a squeaky clean rental history can experience sudden or unexpected financial difficulties, causing them to fall behind in their rent. Most landlord insurance policies can cover you for a range of rental loss circumstances such as when a tenant loses their job, a tenant becomes sick or sole tenant death. It’s common for financial loss to be an extra for policies, so make sure you double check your cover to fully understand what you’re protected against.
MALICIOUS OR ACCIDENTAL DAMAGE
According to Terri Sheer, damage to a property caused by a tenant is the second most common landlords insurance claim. You can get policies which can cover you for both malicious or accidental damage. Examples of malicious damage are; holes in walls or doors and smashed windows. Accidental damage can include things like wine spilt on carpet or damage caused by a pet. Standard home and contents insurances may not cover you for tenant-related damages, so it’s imperative you ensure your landlord’s insurance covers you for this.
A busted water pipe or leaking washing machine are common causes of water damage. Luckily, with most landlord insurance policies, water damage to your property is covered. Your home insurance may also cover water damage but usually, this is only for flood-related instances. It’s important to cover all your basis and make sure you invest in both insurances.
WHEN SHOULD YOU START LANDLORD INSURANCE?
As soon as you begin your rental journey is the best time to invest in landlord insurance. Once advertised, your agent will bring many people through to inspect your property. Once you allow people through your door, you’ve set yourself up for a liability risk. If a prospective tenant trips over a mat and breaks their ankle, you might be held liable. Remember you can’t backdate a claim so it’s best to protect yourself from day one.
KYLIE WALKER – DIRECTOR MARKETING AND BUSINESS DEVELOPMENT
07 3202 3040
Starting out with a career in the media, Kylie brings a wealth of communication and marketing skills to the team at iThink Property. She helped launch and develop the company’s rent roll several years ago and has organically grown the business. Kylie manages the Marketing and Business Development, along with implementing effective systems that ensure continued development of the business.