Big things come with big responsibilities and being a landlord is one of them

Big things come with big responsibilities and being a landlord is one of them.

Before investing in a property in Perth, you should do your research about how to keep your new asset safe and secure. Thankfully, your team at Thought Leaders Real Estate have done some of the research for you. In this article, we are exploring Landlord Insurance, and all the important things that you need to know about it. 

What is the purpose of Landlord Insurance? 

Landlord Insurance is a safety precaution designed and implemented by the law to safeguard the rights of a property owner and save them from being out of pocket. Your Landlord Insurance is responsible for covering the cost of any repairs and damages that happen to and in your property, particularly while being leased out. It's an investment that a landlord does to sustain the expenses of maintenance of a property.

Landlord Insurance has three categories:

• Loss of Rental Income Insurance - it covers the part if there are issues with the rental income
• Contents Insurance - it is the insurance of the things inside your property, such as appliances and furniture, etc.
• Building Insurance - it is related to all the structural damages that occur to the property. It may include fire emergencies and maintenance, etc.

What does Landlord Insurance cover?

Different insurance companies offer different insurance plans and it varies what it covers. However, here are a few common things that Landlord Insurance covers.

Building Insurance:

●       Natural disasters (earthquake, lightning, flood, Storm damage, etc)

●       Fire

●       Vehicle Accidents

●       Vandalism

●       Explosions

●       Rebuilding Cost

●       Replacement of security system

 Tenant insurance:

●       Loss of household contents by tenants

●       Theft by tenants

●       Delayed rental income

●       Legal liability cost

●       Non Paying tenants

Content insurance:

Everything will be taken care by an insurance company in case the property contents have been impacted by the following:

●       Natural disasters (earthquake, lightning, flood, Storm damage, etc)

●       Fire

●       Vehicle Accidents

●       Vandalism

●       Explosions

What doesn’t Landlord Insurance cover?

Almost everything is covered by Landlord Insurance, if you get the right kind available in the market. You need to keep your contracts intact and clear to avail the insurance.

Some of the things not covered by landlord insurance include:

●       Loss of rental income without an intact contract

●       Legal liability of a tenant

●       General wear and tear or gradual deterioration of property

●       Pre-existing damages such as faulty structure, design, etc.

●       Leasing agreement's breach

Thought Leaders Real Estate provides property management Perth, renting, buying, and consultancy services as a real estate agency in Perth. If you need to learn more about what it takes to be a landlord or have a problem at hand about property management Scarborough - contact us and get your problems sorted.