The new financial year is a fresh start, and there’s no better time to review and assess your current landlord insurance policy.
Landlord insurance is used to protect what is typically one of your most significant assets. Let’s face it; you are entrusting your property to a tenant, whom you don’t know. So, despite the best efforts of your Raine & Horne property manager to find a suitable tenant, it still pays to have some insurance protection.
However, what exactly does landlord insurance cover? Typically, landlord insurance covers several tenant related risks, which don’t fall under regular home and contents insurance policies. Consequently, landlord insurance can cover theft or burglary, malicious damage, damage by fire, flood or storm, loss of rental income or legal costs involved in evicting a tenant.
When reviewing your policy, take note of extras cover, such as whether you are covered for accidental and malicious damage or theft only. Also, confirm your policy covers damage caused by tenant’s pets? Does the policy cover furnish or an unfurnished property? Likewise, if your tenant defaults on rent, are you covered?
Best of all, because landlord insurance is an investment property expense, it can be claimed as a tax deduction.
When comparing landlord insurance policies, take note of what the excess will be when you make a claim and what it covers. While it pays to read the fine print, you’ll find that most policies include public liability insurance that covers landlords for deaths or injuries that occur on their properties. That said, be sure to check you are covered if someone injures themselves on your premises. This injury could be caused by someone slipping on a wobbly step, a wonky staircase or a shred of raggedy carpet.
When taking stock of your current policy, it pays to shop around and compare what other providers are offering. To make sure you are not paying too much for your current policy visit: http://www.ourbroker.net.au/insurance