The importance of landlords insurance

31/05/2016   Lorena D'Amico, Head of Property Management

Generally, when you own your own home, taking out insurance on your property is something that is done without a second thought. However, many who purchase an investment property may not think about taking out landlords insurance – and may not necessarily see its value until too late.

At The Hopkins Group, we encourage all of our landlords to take out landlords insurance. While many landlords are aware that a building must be insured, and do organise building insurance themselves, what many don’t realise is that this type of insurance does not provide a comprehensive level of cover which may be needed.

Some landlords can be under the impression that contents should be covered by the tenant’s contents insurance - which is correct for the tenant’s personal belongings. However, unfortunately things such as flooring and window furnishing are sometimes also considered contents for the purposes of building insurance coverage, but not under the tenant’s content insurance policy. 

Standard home buildings and contents policies also do not usually provide cover for two of the most significant risks facing landlords — malicious or international damage by tenants and failure to pay rent.

While most tenants take good care of the property they are leasing, those that don't may intentionally cause extensive damage.  Intentional damage is also not generally covered by a standard home insurance or body corporate policy either.

Another key difference between landlords insurance and regular building insurance is that as a landlord, you can claim loss of rent with landlords insurance.  Loss of rent coverage includes situations such as where a property is untenantable, tenants absconding, there is a default of rent, no vacant possession, death of a sole tenant, malicious damage, murder and suicide just to name a few.

There are many landlords insurance providers in the market, so it pays to shop around and do your research. One provider that many of our clients use is Property Insurance Plus. As a result of our relationship with Property Insurance Plus, we are able to share an offer available exclusively for our clients for both Building and Landlords Loss of Rent Insurance. Our property management team believe this offer will help make your residential property investment more secure, and save you money, whether or not you have Landlords Insurance already.

Your exclusive benefit is a 14 month cover for just 12 months premium, i.e. two months free insurance for both landlord and building cover, a further 10% for two or policies and discounted building insurance premiums.

Landlords comprehensive loss of rent- accidental damage is only $287.00* and most importantly, is a tax deductible expense. For only $287.00 for a 14 month cover it really is a piece of mind when renting out your investment property because unfortunately things do happen and you will be prepared in any event. 

For further information on landlords insurance, or to find out more about this offer, please call 1300 726 082 and ask to speak to a property portfolio manager today.

*These benefits are for Landlords cover only – NOT building insurance. Please contact Property Insurance Plus if you require a quote for building insurance. Please refer to the Product Disclosure Statement for complete details of terms and conditions of cover.

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