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  • Writer's pictureAmanda Bird

Everything You Need to Know About Landlord Insurance

There are many types of insurance out there, each serving its own specific purpose. And one particular type of insurance that would be of interest to property investors is landlord insurance. Through landlord insurance, property investors can ensure their rental income and property are kept protected. So, if you're interested in taking advantage of landlord insurance, here's everything you need to know about it.

What Is Landlord Insurance?

Let's start with the basics. Landlord insurance is property insurance designed to protect your property, its contents and your rental income. It's a type of property insurance designed mainly to protect landlords and property investors against a variety of risks associated with having rented out a property.

It's important to note that landlord insurance is different from home insurance. Home insurance is optional and helps protect a property owner against damage caused by fire, theft and other risks.

On the other hand, landlord insurance is optional insurance that protects the landlord against specific risks. These risks include claims for damages made by tenants due to accidental damage, injuries or worse.

What Is Covered by Landlord Insurance?

Landlord insurance can protect against a variety of risks. A typical landlord insurance policy covers the following:

General Damages

This could include damage or destruction to the landlord's property due to fire, lightning, hail, explosion, flood, earthquake, etc.

Accidental Damage

This refers to damage or destruction caused by tenants or their guests. As a landlord, you can be held liable for this type of damage, should your insurance provider not be able to pay for it.

Claims for Damage to Contents

This refers to accidental damage to the tenants' property. For example, say your tenant accidentally damages the washing machine in your rental property. As the landlord, you can be held liable for it.

Loss of Rental Income

This refers to any loss of rental income due to damage or destruction of the property. For example, the property has been completely damaged by fire. As the landlord, you can be compensated for the loss of income due to the fire.

What to Look for When Choosing a Landlord Insurance Policy

It's hard to find a landlord insurance policy that fits all your needs, which is why you must take your time in deciding which policy to get. Here are some of the factors and features to consider when choosing a landlord insurance policy:

  • Coverage Should Be Clear - A good landlord insurance policy should be clear on what it covers and what it doesn't. So, make sure to read the policy and familiarise yourself with the risks it can cover.

  • Inclusion of Rental Income Protection - Choose a landlord insurance policy that offers rental income protection. This can be really useful if you have to go through the hassle of finding new tenants after the previous ones leave due to the damage or destruction of your property.

  • Inclusion of a List of Insurable Items - A landlord insurance policy should include a clear list of insurable items. This can help you keep track of the properties and belongings that are insured under your policy.

Final Thoughts

As a landlord, your properties and rental income are at risk of getting damaged or destroyed. And, if and when these are damaged, you have to be compensated. Having a landlord insurance policy can help you save yourself a lot of trouble and protect your property and rental income. So, it's best to find a good landlord insurance policy that can cover all your needs and concerns.

Protect your property investments with the help of New Wave Insurance. We are Gold Coast insurance brokers that aim to help you find the right insurance for your assets, business and vehicles. Our knowledge of the market and the ability to negotiate on your behalf will see you saving time and build confidence in your protection. Book a free consultation now!

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