Whether you are a seasoned property investor with an established portfolio or have only recently purchased your first investment, it's important that you are safeguarded against unforeseen risk through the cover of appropriate insurance.
What is landlord insurance?
Landlord insurance works to mitigate the liability of a landlord for risks associated with the fixtures and contents internal to your investment, in addition to the financial risk and safety issues associated with your tenants.
Unlike owners corporation insurance - which only covers liability associated with strata zoned areas of a property - a good landlord insurance policy works to cover a landlord's financial liability for contents, fixtures and tenant related risks - including loss of rent.
When considering the example of fire or water damage, landlord insurance will cover the damage associated with all areas beyond the front door of your strata-titled dwelling, from contents and fixtures to the possibility of covering rent if the residence is not fit for your tenant to reside in.
Anyone who has had to make a sudden insurance claim will immediately understand the importance - and the benefit - of taking the time to select the correct insurance policy (or policies) to cover all risks associated with their investment property.
A comprehensive combination of owners corporation insurance and landlords insurance working side-by-side is necessary to ensure adequate coverage of a strata titled dwelling.
No matter what insurance policy you ultimately select,
Insurance cover is not 'one size fits all'.
Every insurance policy is different and all investment properties will have varying insurance requirements.
Each insurance policy offers a diverse suite of benefits that may differ depending on the insurer and type of policy that is ultimately selected by a landlord.
Insurance is only a safety net
Insurance is for unforeseen risk only; it is not for general wear and tear
No matter what type of insurance policy you choose, or how comprehensive your cover, insurance is always merely a safety net. It does not take the place of the regular upkeep of your investment property.
For the best results when selecting a landlord insurance policy, make your insurer aware of any current issues with the property and ensure that it remains well maintained throughout your ownership.
For more details about Landlord Insurance contact your Jellis Craig Property Manager.