May 20, 2020

Protecting your valuable asset- what to look for in landlord insurance

As a landlord, you can have the best property manager, the most ideal rental property, and it can be located within one of the most sought-after rental markets but occasionally nature (or fate) throws a curveball that no one saw coming.

When that curve ball arrives in the form of a natural disaster like storm, flood, cyclone or fire it can have far-reaching impacts you wouldn’t expect.

That’s where landlord insurance comes into its own. So, here’s a quick guide on what to look for when it comes to landlord insurance.

It’s a necessity

Any property manager worth their salt won’t take on a rental property unless there is proof of landlord insurance.

They know that property is a valuable asset that should be protected, and the income derived from it requires protection too.

But like all insurance, some are better than others. So, as a landlord what should you be looking for when it comes to one of your most valuable financial assets?

The devil in the detail

There are lots of insurers out there offering landlord insurance as part of their everyday coverage, but some are more specific than others when it comes to exactly what they’ll cover.

In recent years, this has been highlighted by a series of natural disasters that have befallen places like Townsville and Airlie Beach. In Townsville’s case it was floods, in the Whitsundays it was cyclone, but both have illustrated the value of all-encompassing landlord insurance.

Elsewhere it might be bushfires that pose a more likely threat or storms, but one of the most important things to consider is which natural disasters might be relevant to your property and its location, and whether the detail of your policy covers them.

Rent coverage

Many landlord insurance policies will cover damage to the actual property and the cost of returning it to its former state, but what about the loss you incur in between such as lack of rent?

The best insurance policies cover you not only for repairing your asset but the income you lose because your property is uninhabitable after a disaster.

General misdemeanours

Meanwhile, does your policy cover rent lost through a tenant’s failure to pay under normal circumstances?

Or what about an errant tenant who damages a property during their lease or leaves suddenly?  As good as your property manager may be, occasionally there are circumstances where tenants maliciously or accidentally do the wrong thing.

And if that happens to be the case, you want to be safe in the knowledge your asset and your finances are protected with insurance.

Don’t just set and forget

Like most insurance, landlord insurance is something that can be tempting to set and forget. But the truth is each year you should carefully peruse your policy.

You should make sure you are covered for damage to the building, covered for events that are relevant to that specific area, covered for loss of rental income, and are receiving a fair deal.

About Eview

When it comes to property management, agents powered by the Eview Group pride themselves on offering landlords and tenants an experience that’s far different to the norm.

Our agents are each invested in the success of their rental properties, understand that for tenants it’s a place that they call home, and firmly believe that managing an asset as financially important as property is a privilege, not a chore where we can help you achieve your investment aims.

You can learn more about the Eview property management difference here.