Attention investors! We want to talk to you about landlord insurance and why you need to have it.
There are over 2 million people in Australia with one or more investment properties. We think this is excellent for our future and our economy. We recently learned that around 40% of investors do not have adequate insurance to cover themselves against unexpected events.
These findings from the Landlord’s Advisory Service are staggering. We get it though. When things are going well we tend not to think about rainy days.
In our experience, we have found many investors are unaware of what landlord insurance should cover and how cost effective it can be.
When you have proper landlord insurance you should be covered for the following:
- Loss of rent due to payment defaults by tenants
- Legal expenses to evict tenants
- Damage to your property caused by natural disasters and loss of rent as a result
- Damage caused by tenants or their guests
- Theft or burglary by tenants or their guests
- Damage caused by tenants’ pets
- Change of locks if you have claimed a rental loss
- Plus much more
There is actually a very big list of factors that landlord insurance can cover. All insurance products for landlords have varying inclusions and exclusions. So just like your car insurance and home and content insurance, it pays to do your research and read the fine print.
Here are a few things to consider before you take out landlord insurance:
- The climate in and around your investment. Is the area prone to flooding, storms or bushfires?
- How long will you have your investment property for before you sell? Long term or short term?
- Are you using the services of a property manager?
- Will you allow your tenants to have pets?
Many investors are unaware that the premiums they pay on their landlord insurance are tax deductible.
It’s a small price to pay for a significant investment into your future. Not to mention peace of mind that if something unforeseen occurs you can minimise financial loss.
If you have questions regarding landlord insurance, you can always chat to our property management team. We are here to help.
Call 1300 652 842 or email firstname.lastname@example.org