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Author: Bronwyn Chandler

Do I need Landlord Insurance?

In short, yes.

Any investor worth their salt will tell you that getting the right level of cover to suit your needs is non-negotiable. Property investing is considered one of the less volatile investment options, but even the best tenancy can go belly up.

Put it this way – Your own home is your best investment – would you ever consider not taking out Home and Contents Insurance? Surely not.

So, given that we purchase investment properties to secure our financial future, and that these properties are subject to the same unpredictable variables that our own home faces, in what world does it make sense to leave your property portfolio vulnerable?

Inside/Out

Many investors are familiar with Building Insurance, which covers the structure and outside of a property, but confusion is common when it comes to exactly what is covered by Landlord’s Insurance.

The great thing about Landlord’s Insurance is that not only does it cover all the things a Building Insurance policy will cover, it also provides protection for the interior aspects of the property. Think carpets, blinds, light fittings, fixtures and built-in appliances.

Any of the tenant’s contents such as removable furniture and appliances, clothing, etc will need to be covered by a separate Contents Insurance policy, taken out by the tenant.

Outside your control

We live in the lucky country, but we can’t ignore the fact that sometimes events outside our control can severely impact our lives.

You only need to look to the news in recent years to see the effect that major natural disasters like bush-fires and floods can have on a community.

Imagine for a second that your investment property was situated in the path of a tropical cyclone, or was overwhelmed by flood water. 

These are the situations where having the right cover for your investment property really pays off.

Loss of rent

When we invest in property, we do so on the predicated risk that we’ll be able to rely on stable tenancy and a steady flow of rental income.

But what would happen if, for some reason, your rental income suddenly dried up?

If your tenants decided to pull up stakes and leave overnight, if your tenant were to pass away suddenly, or if your property was not tenantable (due to damage, etc), how would you cope financially?

Again, having the right Landlord’s Insurance can help. For example, by taking out a Landlord Insurance policy through The Greater, you’re able to access loss of rent cover for up to 12 months following an insured event!

Get it right for your needs

The reality is, your investment property deserves the right protection. You’ve worked hard to position yourself to invest in your financial future, so don’t leave yourself vulnerable.

You owe it to yourself to find cover that suits your need. As a rule, be sure to look for

  • Payment flexibility at no extra premium
  • Decent loss of rent cover
  • Reliable Landlord’s Contents cover

The Greater has partnered with Allianz, one of Australia’s leading insurers, to provide customers with great value Landlord’s Insurance cover.

To find out more about Landlord’s Insurance cover through The Greater, click here.

To get a quote online in just minutes, click here.

If you found this blog helpful, and would like to be kept up to date with handy financial hints and tips, why not connect with The Greater on Social Media?

Comments

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Jake White

My wife and I just decided that we are going to go ahead and rent out our basement, and we just wanted to make sure that we are properly insured to do that. This article was very helpful, especially since we hadn't even thought of the possibility of having loss of rent coverage. Thanks for sharing this with us!

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