Is your investment home protected?
Is your investment property is insured? Are you sure you have the right cover?
Now we’re not talking about building insurance, because that’s a given we’re talking about landlord insurance, the insurance that protects your asset from tenants. Yes, there is the bond to help cover the expenses, but what about those unforeseen circumstances where the tenants don’t pay for weeks on end or decide they want to damage the property? The bond simply doesn’t cover the extent of these costs.
Landlord insurance is easily one of the most important things you need to have in place, and on top of this you need to make sure you have effective landlord insurance.
How many of you have decided not to renew your landlord insurance because you’ve had great tenants for 2 years or because it was due at the same time as other bills? This is a mistake made by many landlords.
At any given time those great tenants could lose their jobs and stop paying rent or have a party and the house gets damaged or they could simply just up and leave. What do you do then? Can you financially manage 2 mortgages and the cost of repairs?
Now some of you will have kept your landlord insurance up to date, but my question is have you read the Product Disclosure Statement (PDS) for your landlord insurance? Do you know exactly what is and isn’t covered? Do you know how much your excess is? $500? $1000? Or 4 weeks rent?
Sometimes landlords go for the cheaper option for landlord insurance, because it’s all the same right? Wrong! Many of your cheaper, unspecialised landlord insurances will have a higher excess and won’t cover you for malicious damage, all loss of rent or even pet damage. Specialised landlord insurance companies exist and their landlord insurance policies will cover you in any instance whether it’s for loss of rent because the tenants required a rent reduction, removal of goods, reletting expenses and even sheriff expenses.
Are you prepared to take the risk with your investment property? Talk to us today about ensuring you have effective landlord insurance and your investment is thoroughly protected.