Is your Cover Adequate??
The Importance of Landlord and Building Insurance
No one knows better than us how quickly a great tenant can suddenly stop paying rent or break their lease at short notice. This is why we encourage our landlords to obtain Landlord Insurance alongside with Building Insurance. As with any insurance, you may pay for landlord insurance or building insurance without ever encountering the risks and dangers your policy covers. Then again, you might. Ask yourself, is the risk worth it?
Landlord Insurance:
Think of landlord insurance as a safety net for when the unexpected happens. Landlord insurance protects against tenant-related losses. Things like; inability to pay rent, loss of rental income due to tenant related risks such as a tenant breaking their lease or being evicted. Covers damage to your contents that was caused by the tenant – especially furnishings you forget, like curtains, carpets, blinds and light fittings. Depending on your coverage, some insurances include additional benefits such as re-letting costs above the tenant’s bond, removal of goods, legal expenses and replacement of locks following an eviction. It’s important that you don’t just use any insurer that pops up on your google search first, make sure your insurance covers accidental damages, it’s very often the bond won’t be enough to cover the associated costs. If you haven’t got landlord insurance or are looking to switch companies we highly recommend Terri Sheer or AON. May things are out of a property manager’s control – be proactive and give yourself added peace of mind.
Building Insurance:
Unfortunately you can’t control the weather or other unexpected events like theft or accidents. But you can protect yourself against the loss and damage they cause. Building insurance covers damage to your building from events like fire, storm, flood and water damage. Covers damage to your building caused by tenants or unknown persons. Depending on your coverage, insurers such as Terri Scheer cover for loss of rental income if your building is damaged by an insured event and legal liability for an occurrence that caused death or bodily injury to other people, or damage to other people’s property.
The cost of landlord insurance and building insurance differs according to states and suburbs so be sure to shop around for the best policy, while remembering that cheaper ones often aren’t the best. Ask the provider to list exactly what the policy covers including natural disasters, rental losses, tenant and pet damage, public liability and legal details. Also check on any extras they offer. If your rental property is furnished, you’ll want contents insurance too.
