If you are a landlord and are looking to protect your investment then waiting until it’s too late may end up costing you much more in the long term. Landlord insurance may be able to cover you for a number of issues such as burst pipes and roofing deterioration, as well as protect you against loss of rent if an issue may ever arise. But do you really need it or not?
Any insurance broker will tell you that having insurance and not needing it is much better than needing it and not having it, and in most cases that is true. Who knows what the future holds for you, your tenants and your property with a number of issues that can arise over both long leases and multiple tenants being switched.
Protect Your Property From Specific Dangers
Many landlords suffer a few problems during their tenant leases with general household problems such as leaking roofs, burst pipes or worse. These can often be resolved simply and easily, but if your rental property suffers from something a little more serious, you could lose rental income for a number of weeks and even months while the problem is being rectified.
Insurance covers most of these general eventualities, as well as a number of unforeseen circumstances in which you may have no control. Some insurance packages include being insured through loss of rental income when a tenant does not pay rent, or when a household issue arises that means the tenant has to be moved into an alternative property.
Many of these landlord home insurance policies allow the landlord to claim monies on rent default where a tenant refuses to pay rent, or where a tenant causes malicious damage to the property. This also includes theft by the tenant from a multitude of items that can be added to your policy for safe coverage.
Recover the Costs of Loss of Rental Income
Landlord protection insurance can be similar to residential insurance in that it protects the building against a number of unforeseen events such as bushfire, weather and storm damage and other regular issues, but also adds in the policies of loss of rental income, and other unique events that arise if damage is done to your property and the tenant can no longer live there due to damage, fire or other, you can claim loss of rent from the insurance policy to keep you from losing out for the second time.
It is these policies that make landlord protection insurance one of the most popular additions to regular insurance once a landlord starts renting out a property. Aside from the confidence, it gives a landlord in renting out the property in terms of accidental damage, it also allows the landlord to further invest in the property without fearing larger losses.
Many insurance professionals are out there to help you decide which policies suit your property the best and can help decide on the costs of the policies you will be covered by. A full protection may be overkill in some places, but with the option to pick and choose from a range of policies, you will be able to fit the insurance burden into your budget and find that it will pay off in the long run.
When you balance out value for money and the level of protection you and your property will enjoy when opting for landlord protection insurance, you may find that it is a small price to pay for the benefits that it brings. There only needs to be one thing that goes wrong with your property to put your future of property landlord at risk, so act on to avoid an avoidable situation.
If you are still unsure speak to one of our team to discuss your risk
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