Every landlord who owns an investment property has two big concerns.
Firstly, that the rent is paid on time and secondly, that the property is well cared for, with no damage.
It is our agency’s focus to ensure that we are strict with the tenant selection process and reference checking; however, circumstances can often change during the tenancy.
To eliminate these concerns, it is important to consider having adequate insurance cover to protect your asset. This article is a reminder to those landlords who are exposed to these concerns by not having insurance. We still have landlords who do not have this cover and it is our duty of care to inform you of this insurance.
Landlord insurance is a specific policy designed to protect your rental income and costs associated with property damage.
It is important to be aware that not all landlord policies are the same. There are varying excesses, inclusions and exclusions with different insurance providers that can reduce your level of cover and payout.
To assist in comparing landlord policies we have summarised the seven different components that you will need to discuss.
Landlord insurance is not expensive (compared to the possibility of lost income) and is a tax deduction to give you peace of mind.
It is recommended that you do not go with the cheapest quote with this type of insurance. Take the time to compare the policies and what you are covered for, as they are all different. Some policies will only provide insurance up to a small limit, and others won’t pay more than one claim in a year, or won’t cover you for certain events.
Reference: PPM Group