In a word – YES!
Sometimes things go wrong – from tenants defaulting on their rental payments, to properties being seriously impacted by fire or other damage. Landlord insurance significantly reduces the risks faced by landlords, and offers peace of mind that assistance will be there when the unexpected occurs.
Most of the major insurers offer landlord protection insurance, and at Residential Properties Australia we’re more than happy to advise on the policies that we think will best meet your requirements. Of course it’s always a good idea to read the product disclosure statements published by each insurer to ensure you understand what is and isn’t covered.
Typically, insurers will cover things like rental default (this occurs in the circumstances where the tenant has failed to make the required payments), legal liability, breakage of glass, fire and water damage. Policies can also cover things like rental payments when tenants depart your investment property without notice, or when natural disasters strike and cause damage.
The specifics and the terms and conditions vary between insurers so it’s a good idea to make sure that the policy you select covers your key risk areas. Read the fine print and make sure you’re covered for everything you need. Insurers can sometimes leave key coverage areas out (or charge more for their inclusion) if your property is located in an area where they consider a greater risk of a particular event. (For example, earthquakes or major flooding).
At RPA, we consider landlord insurance to be a must-have. It’s a sure-fire way to help protect your most valuable investments, and minimise your personal exposure if something should happen to go wrong. Contact us today at www.residentialinvestment.com.au for support and advice.