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Landlord Insurance: What is it and why is it important?

Sep 27, 2021
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Many Australians have investment properties. In fact, in 2018 about 2 million Australians owned investment properties. From the average Mum & Dad investor who are looking to get ahead, to the super-rich property magnates who seem to own half the town, almost every Australian finds comfort in property investment.

Whether this is because people find these investments easy to understand, or whether its because of the potential tax benefits (such as negative gearing), the demand for property investment is enormous. So is the market for Landlord Insurance.

What is Landlord Insurance?

Put simply, Landlord Insurance is home and contents insurance for your investment property. It provides similar covers including Public Liability, storm damage, theft, fire, etc. but also includes other options such as loss of rental income and damage from tenants. It's important to note these aren't standard on every policy and you will probably have to add them as extras.

Why do I need insurance when my tenants have paid a rental bond?

Some people opt to rely on the bond paid by their tenants instead of having an insurance policy. And, while the bond can act as a form of insurance, it is extremely limited in nature. If the house is to be damaged and the bill to fix it is into the tens of thousands of dollars, do you have the cash reserves to pay the additional amount on top of the bond? For most people, the answer is no. With your investment property being such a significant asset, it's crucial to have the proper protection in place.

Does Landlord Insurance cover me for my Airbnb property?

In most cases, this won't be an issue as long as this is disclosed to the insurer first.

In most cases, properties that are rented on a short-term basis carry more chance of a claim. This usually means that your premium will be higher as your property carries more risk, but it is still crucial that you have cover in place. If your insurer excludes short-term accommodation or won't cover Airbnb, we are able to assist as we have access to a wide range of insurers who will provide cover.

Can insurance advisers help with Landlord Insurance?

We have helped a lot of clients with their Landlord Insurance policies. In most cases they have had policies direct with insurers before coming to us. We have been able to assist by pointing out some of the limitations in their policy, reviewing their overall situation and providing recommendations for policies that better suit their needs. In most cases, we have been able to save our clients money as well as increase their coverage.

If you are looking to get a better deal on your Landlord Insurance or are concerned you may not be properly protected, speak to us today.

Cyber Liability Insurance

Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.

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Public Liability Insurance

Public Liability insurance is there to provide protection if someone makes a claim against the insured, the business or its employees.

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Business Insurance

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

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If you are looking to get a better deal on your Landlord Insurance or are concerned you may not be properly protected, speak to us today.

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General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

LARK Insurance, ABN 56 635 745 176, AFSL 240549

This article originally appeared on LARK Insurance and has been published here with permission.