As well as safeguarding your property and contents against damage or loss, Landlord Insurance covers rent default and the associated legal costs, malicious damage caused by tenants and loss of rent if the property is uninhabitable due to damage.
Landlord insurance covers several must-haves for investment property owners that are not covered by other types of home and contents insurance policies: Theft or burglary by tenants or their guests. Malicious damage or vandalism by tenants or their guests. Loss of rent due to tenant default.
If you have elected to take Landlords insurance, the building cover component of the policy may only cover claims caused by malicious, accidental or deliberate damage and theft by the tenants or their invitees. The landlord should also consider maintaining a Comprehensive Building Insurance policy which covers a broader range of damage to buildings as with any domestic dwelling. The extended building cover can be incorporated into a Landlords policy.
Yes. Both fixed term and periodic leases are covered as well as any continuation of a lease however you must advise your Broker the terms of the lease agreement as this can be a factor is assessing the insurance premium.
There’s no legal obligation for a landlord to take out a dedicated insurance policy. However, if you have a mortgage on your property it’s very likely that your lender will require you to take out insurance before tenants occupy the property.
A property investor owned a domestic dwelling that was managed by a local agent. The property owner fortunately took out a Landlords Policy with their broker not only for peace of mind but also to satisfy their Mortgagor.
Everything went along quite well until there was a domestic dispute between the husband and wife leasing the property. The wife moved out with their children and the husband was left in charge of the property and payment of rent. The gentleman was not in a positive emotional state and lost his job and unfortunately started to drink quite heavily. The rent was behind and in his diminished state he had caused damage to the property in several areas of the home. The agent did try to contact him regarding the rent and was unable to get in touch. By the time the agent did obtain access to the property the tenant was gone and the property was in a very poor state. The owners landlord policy responded in both rent lost after the bond was exhausted and all damage to the property was promptly repaired before new tenants occupied the property.