What is Landlord Insurance?
Like home insurance, landlord insurance can cover your rental property and its contents against risks like storms, floods and fire. It can also cover the damage that tenants can cause to your contents - and even loss of rental income. Unlike some landlord policies, Landlord Insurance can cover holiday rentals and long term rentals.
Why do I need it?
Without landlord insurance, you could lose your valuable investment if it's damaged or destroyed. You could also lose income from rent if you're unable to rent it out during repairs, or if your tenants get evicted or break the lease.
"Janet and Ross bought an investment property in Sydney's inner west. They relied on the rent from the property to help cover their mortgage repayments. One year, they rented the property to some tenants who caused extensive damage to some of the walls, floor coverings and doors - and then left owing 12 weeks' rent. Because the property needed repairs, Janet and Ross were unable to rent it out immediately. Fortunately, the couple had taken out landlord's insurance and included the rent default option*. They successfully claimed on their insurance to cover their repair costs - and just as importantly, their missing rent. This allowed them to make their mortgage repayments and repair the property quickly so they could get new tenants in."
*Rent default is an optional extra for landlord's insurance and attracts an additional premium.
Did you know?
Australians own an investment property (CoreLogic, Profile of The Australian Residential Property Investor, 2016)
If damage means you cant rent your property for a while, Landlord Insurance can cover you for loss of rent.
A Landlord Insurance policy can include cover for accidental damage, theft and malicious damage by tenants - as well as loss of rent if they leave without paying.