Is landlord insurance something that I need?
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There are different types of insurance to consider for your investment property. But one thing to consider is landlord insurance. 

Property is one of the biggest financial investments you’ll make — help protect that investment properly with the right landlord insurance.

Here’s what you need to know about landlord insurance to make the right decision for your investment property.

Erskineville property

Landlord insurance helps protect your rental income and your property. Picture:

Landlord insurance can cover unpaid rent

Rental loss can happen for all manner of reasons — they aren’t always the fault of the tenant.

“A tenant might have lived in a property for years and never missed a rental payment, but relationships can end, tenants can suffer illnesses or injuries which prevent them from working, or they may lose their job and be unable to pay rent,” Carolyn Parrella, Head of Niche Distribution at Terri Scheer explains.

“In these cases, they may have to vacate the property early or break the lease owing rent. In other scenarios, a tenant may inadvertently or deliberately damage your property leaving it untenantable whilst it’s being repaired. These are just some risks that landlord insurance can protect you against.”

251 Stanley Street, North Adelaide, SA 5006

Don’t let unpaid rent on your rental property leave you high and dry on mortgage payments. Picture:

Legal options can be expensive and ineffective in recuperating losses from a tenant who isn’t in a position to pay you. Furthermore, you can’t risk falling behind on mortgage repayments in the meantime. This is where insurance may come in handy.

Depending on your policy, landlord insurance may cover loss of rent to a certain amount, allowing you time to find new tenants, fix damages and get ahead of the game again.

Landlord insurance can help with property damage

Whether accidental, on-purpose or for reasons beyond everyone’s control, damage to a rental property can – and frequently does – happen.

“We often see claims where holes are punched or kicked into walls, doors pulled off, and curtains and carpets are damaged,” Parrella starts.

“Accidental or water damage can occur too, which can result in triggering a claim against the policy.

“Having insurance means the landlord’s loss may be significantly reduced. The loss of rent may be covered, including during the time the repairs are being undertaken meaning landlords are less likely to be out of pocket and will be able to manage the ongoing costs related to the property.”

Landlord insurance can help with legal liabilities

If your investment property is a unit, your body corporate or strata should have insurance to cover for a variety of incidents and issues with the building. It won’t however, cover a lot of issues that can occur inside your unit, including legal liabilities.

Brunswick apartment development

Damage to a rental property often occurs. However, landlord insurance will help ensure you’re covered. Picture:

“Many people may not realise that they have a liability risk from the time their property is advertised for rent and open for inspection,” Parrella explains.

“Having insurance in place before your first open inspection can help protect landlords from legal liabilities before your tenants have even moved in.”

Landlord insurance helps protect your contents

Even if your property is ‘unfurnished’, there are still contents that are your responsibility to insure.

“Contents owned by the landlord, for example, carpets, curtains, light fittings and any furniture that the landlord has left for the tenant’s use is covered by landlord insurance,” Parrella says. “The tenant’s contents insurance will only cover the contents owned by the tenant.”

Therefore, while your insurance will not cover a tenant for their stolen laptop, it will cover you if there is accidental damage to your carpets.




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