THE BENEFITS OF LANDLORD INSURANCE

We have all seen the insurance ad on TV with the curtains burning, the gash in the wall and the red wine spill. We have all had accidents like this in our homes and no doubt it has caused some stress and the need to lodge an insurance claim.

Like with all insurance claims, getting good advice is the first port to call, providing a detailed report with dated photos and keeping to the facts at all times.

The unimaginable will at some stage happen to some investment properties with floods, bushfires, electrical fires, unattended candles, lithium batteries exploding, kids playing with lighters, and kitchen fires probably the most common.

The Benefits Of Landlord Insurance

There is no doubt that landlord Insurance is a safety net if the property is consumed by fire or flood. Australia is infamous for flash floods and bushfires that ravage our country every year. As little as a year ago, we saw unprecedented floods with so many homes left uninhabitable including rental properties. Having the correct Landlord Protections Insurance meant some owners were fortunate enough to have coverage for up to 52 weeks of rent paid to them.

The benefit of having an insurance policy that pays for rent while you maneuverer around the partial or complete destruction of your property, cannot be overstated, particularly while you continue to have expenses such as a mortgage to pay, insurance and rates. Like anything though, it is VITAL to check the inclusions on your policy to make sure you are covered in the worst possible scenario as some policies will offer certain cover and benefits that others do not.

You wouldn’t drive your car without insurance so why is insurance for one of your most valuable assets so frequently overlooked?

Renter Damage

As far as renter damage is concerned, it’s up to each company that issues the policy as to what is covered. Therefore, it is so important to carefully look at your inclusions and exclusions and take out a policy that suits your needs. Be sure to look at the excesses charged and if the policy looks at each incident as a stand-alone item or the claim.

Some insurance companies will use the bond as an excess, some will have an excess on each part of the claim, so you need to do your homework. If you were to make a claim for renter damage, either negligence or malicious, your ingoing condition report and regular routine inspections with a dated detailed report including dated photographs can be your best friend if an incident occurs. These will form an ongoing record of the condition of the property and its care and maintenance.

The bond will only go so far and good management by a professional Property Manager will save you time, money, and your sanity.