Landlord Insurance: Why You Need it and How to Get the Best Deal

Are you a homeowner who is renting out your Perth property?

Are you a homeowner who is renting out your Perth property?

Then you will need to consider getting landlord insurance. Today, we explore the topic of landlord insurance, and why you need it. 

 

Firstly, what is it? 

Landlord insurance is the insurance that covers you from the possible common risks you can expect as the owner of a rental property. Common risks can include (but are not limited to):

  • Robbery, bulgary or minor theft by tenants
  • Damage or vandalism to your property by tenants
  • Loss of rent due to tenant default
  • Legal expenses involved in evicting a tenant
  • Damages caused by the pets of tenants 

 

Why do you need landlord insurance? 

 

If you don’t have landlord insurance, you’ll be liable for damages, along with repair and restoration costs to your property. While you can implement rigorous screening processes in place to try and eliminate these risks from happening, remember that risks are not always the result of a malicious tenant.

Sometimes, a risk can boil down to a mistake or an accident. If a renter is injured while staying on your property, you could be up for hundreds of thousands of dollars in liability claims.

You can also be faced with the circumstance where your tenant is unable to make a payment or two. Most tenants are sincere, but there are times where people go through a rough patch, and are unable to pay their rental dues. Landlord insurance can help ensure you are not out of pocket, should something unexpected like this arise. 

 

What to look for with your landlord insurance: 

  • Compare prices that are available in the market 
  • Analyse the specific inclusions of each insurance policy 
  • Review what is excluded from the landlord insurance?
  • Extras and incentives 

 

How do you get the best deal for your landlord insurance? 

 

Here are a few questions you may want to consider asking when vetting out your landlord insurance provider: 

  • Do you need specialist insurance?
  • Does the policy cover contents insurance? 
  • If you are letting your tenant keep pets, what is covered in their landlord insurance?
  • Are there specific risks your property needs to be covered for?

 

At Thought Leaders Real Estate, we want to ensure our clients get the most seamless experience, both as a tenant and as a landlord. Get in touch with our team today. You can also review the red flags to look out for regarding tenants in our article here.

 

 

Posted on Friday, 29 July 2022
in Latest News

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