Property investor numbers are at a record high, according to the ABS, with new investor housing loan commitments rising more than six percent to $11 billion seasonally adjusted. Up to a fifth of Australian adults are landlords, and together that’s a vast pool of experience from which to draw.

Landlord insurance: a quick overview

Savvy investors take out landlord insurance to cover not only the building, but any damage caused by the tenant or fire and theft. It also covers the possibility of rent loss and public liability and legal costs.

1.     Just because your property isn’t tenanted doesn’t mean it shouldn’t be insured

Standard policies offer cover if your property is unoccupied for up to 60 days. But there may be times it will be untenanted for longer, such as during major repairs, renovations, or a soft market for landlords. Always avoid aligning your landlord insurance policy with a tenancy cycle.

2.     Pets and change of locks aren’t necessarily covered

You might have agreed to the tenant having pets as a sweetener to get a lease signed, or maybe the tenant hadn’t told you about any pets. Check if your policy covers any damage caused by pets.

If a previous tenant refuses or does not return the keys, you should change the locks immediately. Don’t assume your landlord insurance will cover the security of the property and for future tenants.

3.     The difference between home and landlord insurance

Landlord insurance has been specifically designed to meet the needs of landlords and includes benefits you won’t get with home insurance. It also covers expenses where the tenant has caused malicious damage, not paid rent, or been evicted.

4.     You may not be covered for short-term rentals (like Airbnb)

Insurers need to sign off on this type of rental before you list your premises on portals, such as Airbnb. A higher premium may be required to cover the extra risks, such as safety issues and possible extra wear-and-tear on the property.

5.     Your premiums may be impacted by your area

Many factors can influence the premium for landlord insurance, including its location.  An increase in an areas rental default rates may cause the premium to rise accordingly.

If you would like to know more about the benefits of landlord insurance, please CLICK HERE or contact us for more information.