Why Do You Need Landlord Insurance?
As a Landlord, you know the value of a good investment, and most Landlords have insurance cover, but do they have all bases covered?
Insure 247’s Steve Sloan explains some basic cover options;
Landlord Property Cover – Defined events
Defined events are basic property cover policies for a range of perils like fire, storm, burglary, leaking pipes and motor burn out cover.
Most Landlord Insurers offer this type of cover, however, some risk may not be covered, for example, malicious damage or vandalism by a tenant, and some may even exclude accidental damage by tenants.
As a company for Landlords Insure 247 recommend the extra coverage offered by an Accidental Damage Policy.
Landlords Property Cover – Accidental Damage
Accidental Damage policies cover all accidental loss or damage to buildings or contents, other than those events specifically excluded by the contract.
For insistence a pot on a bench top may be excluded in a Defined events policy would be covered in an Accidental Damage policy.
Check the product disclosure document or discuss it with a broker.
Loss of Income Cover – Tenant Default
When your tenants stop paying the rent, it can take what seems like an eternity to resolve the issue to have the tenant removed, and then you often have no way to pursue the tenant for loss of income.
Likewise, after a claim for fire, leaking pipes and motor burn out, you may not be able to charge rent or tenant your property during repairs.
Tenant Default or Loss of income cover will see your insurer compensate you for that loss, but once again there may some exclusions, for instance, theft/vandalism by tenants
Loss of Income Cover – Malicious Damage
Malicious damage or vandalism by tenants or their guests is more common than you may think, often as a result of unpaid rent evictions tenants will often damage the property before they leave.
If you are still unsure speak to one of our team to discuss your risk
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