Far too many people don’t read their landlord insurance information until they actually need to make a claim, which can be a stressful time to find out that some key coverage is missing.
We have deep dived and listed the top 8 things to consider when choosing your landlord insurance policy.
1. Buying on price alone
As this is always a major factor in your decision, it can be found that the cheap cover represents poor value products. Ensure you’re making an informed decision about what you’re paying for.
2.Excess
An excess is quite common when making a claim however make sure you’re aware of how much it costs and if it can come out of the bond. A high excess may reduce your premium in the short term, but could leave you out of pocket when it’s time to make a claim.
3.Underinsurance
Insurance for less than the true replacement value may save you money in the short term, but your cover could fall short when you need to make a claim.
4.Malicious Damage by the Tenant
Historically, very few policies covered Malicious Damage by the tenant, but today this cover is quite common. Just ensure you carefully check the limits and excesses as they can vary considerably.
5.Beware the fine print
The Terms and Conditions of cover can have some tricky exclusions in there, look for a policy that keeps it simple, and read the Product Disclosures before signing the dotted line.
6.Court orders
Some policies that cover ‘rent default’ require you to get a court order before you can make a claim, whereas others just require proof of loss.
7.Periodic tenancies or lease continuation
Some insurers won’t pay a claim if the written fixed term lease has expired, make sure you check if this is a requirement to ensure your tenant is always on a valid lease agreement.
8.If you think you don’t need insurance…
Insurance can seem like an unnecessary expense if you have a reliable tenant and a good property manager, but there aren’t many landlords who could afford to rebuild their property or pay the mortgage for weeks on end with no incoming rent. Having insurance is a way to pass on the risk and give you some peace of mind.
Speak to a Realmark property manager today to help guide you on protecting your investment click here.
Disclaimer: Our advice about insurance is provided for your general information and does not take into account your individual needs. You should read the Product Disclosure Statement and Policy Wording prior to making a decision, these can be obtained directly from EBM.
Article supplied by EBM.
Standard home and contents insurance will not protect against many of the risks that landlords face. Whether it be loss of rent due to an absconding tenant, malicious or accidental damage, or a whole range of other circumstances including tenant hardship, the RentCover range of policies provide peace-of-mind for property owners knowing they are well protected by landlord insurance. And has done so for over 25 years.
For more information, or to quote or apply online please visit rentcover.com.au