Like all insurances, you may never need it. But if something major should go wrong, you are likely to be incredibly grateful you took it up. While every policy is different, here are some examples of how landlord’s insurance can make a huge difference to your outcomes.
Damage and theft cover.
Your building insurance probably covers you for accidental damage in a natural disaster like a fire or flood (if you’re not sure, maybe check this with your current home insurer). However, there could be a shortfall when it comes to malicious, deliberate or accidental damage to your home by your homemaker or their invited guests. A good landlord’s insurance policy can bridge this gap and ensure you don’t have to fit the bill. Landlord’s insurance can also cover replacement or repair of your curtains, carpets, blinds and light fittings in the event they are damaged or stolen. You may also be able to cover damage to your furnishings or the building caused by pets.
Compensation for loss of rent.
You may think that the bond held with the Bond Authority should cover loss of rent. However, there are many scenarios where the bond wouldn’t cover your out of pocket expenses. For instance, if your damaged property needs extensive repairs these could take months to complete. If a prolonged period of missed rental payments is going to leave you strained financially, then an appropriate policy is probably money very well spent. Insurance policies can also cover you if your homemaker is in hardship as well as various other unexpected situations and the cost of a policy can be as little as $290 per year