Landlord insurance is a type of home insurance for your investment property that offers a financial safety net against unforeseen damages or destruction.
A typical landlord insurance policy covers the building and permanent fixtures and fittings against unforeseen damage or destruction. You also have the option of insuring your belongings or contents that reside in the building, such as furnishings and home appliances.
As a landlord, you need to take precautions to avoid any potential financial losses should anything happen to your property. Shockingly, four out of five modern-day Australians underinsure their homes. That number includes a large chunk of the two million-plus landlords.
When you apply for landlord insurance, keep in mind that the sum insured amount, cost of furnishings, the area’s crime rate and natural hazard risk will affect the cost of your premium.
You’ll have several types of insurance policies to choose from, such as defined events, accidental damage, fire insurance and motor burnout insurance, as well as policy additions. When you choose, make sure your policy adequately covers the replacement costs for any damage to your investment property.
The most common events people insure their homes against are:
In addition to the above, items that are particularly expensive to replace may need to be added to your insurance policy separately. This additional security will cost extra, as it would typically increase your monthly premiums.
So how do you make sure you choose the right landlord policy for yourself? We’ve made this an easy process for you.