Congratulations! You’re the owner of a new investment property. Now it’s time to take good care of it.
Landlord insurance is a type of insurance designed to protect landlords financially if they are exposed to common risks associated with owning an investment property and leasing it to tenants. Some examples include protection against tenants and their guests’ malicious damage such as theft and burglary as well as their inability to pay rent; a broken lease; and any legal expenses needed to evict them. Landlord insurance also protects against a number of unavoidable “worst-case scenarios” such as floods, storms and fire plus public liability, which can easily be overlooked. It is important to do your own research and secure insurance that suits your needs.
Like any insurance, landlord insurance is designed to protect you. Being a property investor is very rewarding but it does come with risks. While we’d love to guarantee you will never face those risks, if 2020 has taught us anything, it’s that sometimes your life, business, and even industry, can be thrown a curveball. It’s important to learn about the financial risks involved with your investment property and consider different ways to mitigate them. You may assume that you are protected because you already have building insurance or are covered by the owners’ corporation’s insurance policy (if you own a strata property). Unfortunately building insurance protects the building (not the contents) and owners’ corporation insurance only protects a strata building’s exterior. Read the fine print of your existing policies and figure out how protected you really are before you rule out landlord insurance.
There’s only one way to find the best landlord insurance for you: research. Talk to the experts and compare quotes from different providers. Make sure you review the level of coverage in each quote to get the clearest picture of value for money.