It’s likely that any property owner understands the risk of ‘insured events’, including fire, storm, flood and earthquake. What they may not know is that owning an investment property can come with additional landlord risks that standard building and contents policies may not cover. Even what some insurers call a ‘Landlord Policy’ may only cover part of the risk.
There are a few types of insurance to be considered for any investment property;
- Building insurance that covers the physical fabric of the property against risks such as fire, enabling you to rebuild
- Contents insurance that provides cover for items such as light fittings, curtains and cabinetry.
- Landlord protection insurance covers risks relating to tenancies, such as tenants defaulting on the rent.
- There are also some body corporate or strata insurance policies – generally, this cover is for the common areas, not anything within the four walls within your investment property.
Some landlords are under the happy illusion that they don’t need insurance because they use the services of a professional property manager. While professionally managed properties are less likely to experience problems than those where the landlord manages the property themselves, accidents can and do happen to even the most carefully selected tenants.
No matter how good the tenants are that are placed in an investment property, there are some circumstances that cannot be controlled, such as illness, loss of jobs or marital disputes.
For only a few hundred dollars a year, you can buy quality landlord protection insurance that could potentially pay for itself many times over in the event of a claim.
A company that specialises in landlord insurance is EBM, which has over 25 years of experience. Two policies, in particular, are likely to meet the needs of landlords, RentCoverUltra and RentCoverPlatinum.
