What is landlord insurance? Well it’s essential for all property investors to protect their asset. For as little as $400 per annum, you can protect your investment property?
This small fee is all it costs to take out landlord insurance – and it can save you a whole lot more.
Let me explain what landlord insurance is and does for you. It is an insurance policy that is specifically designed to assist your to protect your asset from some of the common risks that are associated with renting out your investment property due to damage caused by an insured event. This can be caused by accidental, deliberate or malicious damage. It may be loss of rental income, default on rent, property being untenantable and so on.
It’s different to building insurance although some property investors have some type of building insurance. Some building insurance policies are set up specifically for landlords for the provision for loss of rent in the event of your property becoming untenantable due to any damage that was caused by an insured event.
Whether or not you own a property in a Body Corporate (also referred to in some states as Strata plan), another benefit of Landlord Insurance which may be of particular interest in this situation is the public liability cover. What many landlords in a Body Corporate might not know is that Body Corporate public liability insurance may only cover common areas, and doesn’t include public liability cover for the landlord inside the individual property itself. This means you could be left out of pocket should your tenant or their visitors incur medical expenses or loss of income as a result of a public liability event within your property.
Note that the cost of insurance can be claimed on your tax as an investment property expense, so you won’t be out of pocket for the full amount.
We often use McLardy McShane to obtain quotes for our clients but also suggest you do your own research.
As always, if you have any questions, leave a comment below.
Until next time,
From the desk of Christine.