Firstly, some background on Building Insurance…
Most home owners will be aware of the standard Home Building Insurance policy. This covers the structure of the building and any fixtures such as kitchen cupboards and wired-in appliances such as range hoods. It does NOT cover fittings such as: soft furnishings (ie carpets & window coverings); light fittings; or other appliances such as ovens, stoves, and dishwashers. These items are normally covered in your ‘contents’ insurance which you would take out if you lived at the property.
HOWEVER – If the property is an investment with tenants in place, the contents portion of such a policy is NOT APPLICABLE.
When insuring your property, you need to advise the insurer that this will in fact be an investment property. This is critical if you are moving out of your home and wish to place tenants. It is not simply a case of reducing the contents portion as this will NOT cover the fittings in the event of a claim.
Landlord Insurance – your Partner in Property.
The good news is that there is a specific insurance that caters for landlords, and covers not only house fittings but also protects your rental income. At Solutions Property Management, we highly advise that you take out such a policy.
What does Landlord Insurance cover?
A good Landlord Protection Policy should cover you for:
– Loss of Rent
– Rent Default
– Malicious Damage by Tenants
– Accidental Damage by Tenants
HOW DO I KNOW WHICH POLICIES ARE GOOD?
Beware of policies that are offered by your standard insurers or banks – they may offer you a great deal on the premium, but when the time comes to claim on such a policy, you will find that the cover falls very short. In fact, owners with these policies often find that they are unable to make common claims and may as well not have wasted their money on the premiums.
When taking out insurance, you need to read the PDS and inform yourself of what is covered. Having said that, here is a short list of important features to look out for:
– Does the insurer allow you to use the Bond for cleaning?
Most insurers will allocate the bond as the first 4 weeks’ lost rent. This means if you make a claim for loss of rent after a tenant has vacated your property, the insurer will only pay you from the 5th week because you have received the first four weeks back from the Bond. However, they do not take into account any cleaning or repairs that may need to be done to bring the property back to a satisfactory state. You will have to foot the bill for this.
A good policy will let you use the Bond for cleaning, rubbish removal, and minor repairs, and will pay you the full amount of rent owed from day 1.
– Will the insurer cover you if the tenant is on a Periodic Agreement?
A Periodic or month-by-month agreement is a legal and viable agreement where the end of the term is not fixed. However, many insurers use their fine print to excuse themselves from paying out on a claim if the tenancy is periodic.
– How much Excess does the insurer charge?
This can vary greatly between policies. Look for an insurer which offers NIL excess for rent default. For malicious damage, many insurers regard each piece of damage as a ‘separate event’, attracting its own excess. So if a tenant leaves several holes in the walls, unless it can be proven that they all occurred at the same time, each hole attracts an excess which negates the worthiness of a claim.
As part of our commitment to offering you the best value products that help to reduce risk to you, we are pleased to introduce Landlord Insure.
They are Landlord Insurance Brokers who have done all the legwork for you and will present for your approval good quality policies to suit your property and budget. They are confident to match any comparable quote from your current insurer. Most importantly, they only recommend policies that provide the best cover.
FREE CLAIMS PROCESSING
Part of Landlord Insure’s service is to submit all claims on your behalf, at no extra cost.
BONUS – FREE ANNUAL SAFETY COMPLIANCE
We are very excited to advise to our owner clients that if you take out a combined Building/Landlord Insurance policy through Landlord Insure, they will pay your annual safety compliance subscription, which covers smoke alarms, safety switches and internal window coverings!
This represents phenomenal value and ensures your property is compliant and you are totally protected.
FOR MORE INFORMATION…
Click here for a no-obligation application form
Should you decide not to take out Landlord Protection Insurance, we require that you fill out our OPT-OUT FORM and forward to us for our records.