Landlord insurance covers particular risks associated with renting out a property that may not be covered by a typical home and contents or strata title insurance policy. It is impossible to predict what might happen to a property, or a tenant therefore a good landlord insurance policy is an essential risk management tool.
Studies have shown that on average, only 20% of landlords have insurance cover and of those 20% many choose incorrect or inadequate policies. Insurance is an area in which landlords often try to cut costs, and in the process they are putting their valuable assets at risk. Cheaper premiums do not necessarily ensure comprehensive cover and what is often overlooked is the legal liability component.
Common features of a landlord insurance policy should include:
– Malicious or intentional damage to the property by the tenant or their guests
– Theft by the tenant or their guests
– Loss of rent if the tenant defaults on their payments
– Liability, including a claim against you by the tenant, and
– Legal expenses incurred in taking action against a tenant
If you want to know more about landlord insurance or have any queries regarding management of real estate investments you can contact Pennisi Real Estate on 03 9379 5616