Do I really need landlord’s insurance, or can I save by not shelling out for it? It’s a question that’s probably crossed every property investor’s mind at some point. The answer? A resounding yes.
It’s a must for all property investors,” “It’s only a small, tax-deductible expense that could end up saving landlords thousands of dollars in the long-run.”
Need specifics? Here are all the possible circumstances landlord’s insurance will cover you for.
Even if you’ve done your due diligence and picked the best tenant, you’re still not guaranteed smooth sailing. “Your tenant’s circumstances can change and that can affect them financially or how they look after the place,”
Landlord’s insurance is a safety net for when the unexpected happens. Picture: realestate.com.au/buy
And, if you’re in the business of short-term rentals or holiday homes, that’s even more true – particularly as you will be doing less background research on the tenant at the start.
A landlord’s insurance policy designed specifically for short-term rentals will ensure you’re covered should anything happen.
The next thing landlord’s insurance will cover you for are unexpected natural disasters or accidents in the home. Breaking or leaking water pipes, and area fires and floods can and do happen. And insurance will have your back.
“It gives the owners peace of mind, knowing they can continue to cover their mortgage while they’re going through this stress,”“They have the insurance there as a safety net.”
Pets can be another big (but adorable) issue for landlords. “More and more tenants are having pets in their property and they can cause damage to floors and gardens,”
As much as a tenant can look after their pet in a property, it can still cause damage. Picture: istock
4. If your property is being sublet
Subletting is another potential problem for landlords. If your tenants have organised someone who isn’t on the lease to live in the property, they won’t have met you and might not treat the property as well as someone who has.
Plus, without being on the lease, they can avoid becoming accountable for any damages. “That’s where insurance can assist you as well,”
And finally, landlord’s insurance will cover you for any minor incidentals that may come up.
Say, for instance, your tenant had to move out unexpectedly. The insurance will cover for the loss of rent, as well as for any cleaning, repairing, leasing and advertising fees you may be subjected to,
Moral of the story? Get landlord’s insurance.
