Property owners are at risk of rental losses from non-payment, property damage, and for paying for ongoing costs if the property is vacant. Protect one of your most important assets by obtaining landlord insurance.
What’s so different about landlords insurance?
Owning your own home means you need insurance for the home and the contents inside it. However, when it comes to owning a rental property, there are added risks associated with having tenants live in this home. You rely on them to ensure the property is maintained well and the rent money is paid on time. If these are not met, you could suffer unforeseen costs and a shortfall of rental income.
When does landlords insurance help?
- Tenants moving out – If your tenant leaves before their lease has expired, leaves without paying rent, or owing you rent, then you’ll be faced with covering the ongoing costs of the property yourself plus the loss of this rent. If you engage landlord insurance, you’ll find yourself covered for these losses whilst you look for a new tenant.
- Emergency repairs – Just in case something goes wrong at the property.
- Tenants refusing to pay and refusing move out – A stubborn tenant that won’t pay and won’t move out is a real issue. Your landlord insurance help you with at least some of the costs involved with dealing with this situation.
- Evicting a tenant – If you need to evict a tenant for late payment, neglectful tenancy, damage, or illegal activities on your property, you may need landlord insurance to step in and help with the costs involved whilst you look for someone new.
- Protection for your for risks such as fire, flooding and theft - Your building structure and items such as carpets, blinds, curtains, spas, pools, and whitegoods will be covered under a landlord building and contents policy.
Adding up the costs of a bad tenant
The costs of owed rent on your investment property add up. You may be owed rent in arrears, with no current tenant to replace them and keep the costs down, you can be left in the lurch. Other costs that may also come up include advertising costs for finding a new tenant, time spent dealing with damage or tenancy issues, and ongoing costs of property maintenance such as utility bills, taxes and loans.
Recovering your costs
If you’ve suffered a loss at your rental property you’ll be able to recoup some of the costs via the bond money. However, if the costs are more than this you may be left out of pocket. Insurance can help to cover the rent default and associated legal costs, and the loss of rent due to the property being unusable due to any damage caused by your previous tenant.
Don’t leave yourself open to financial risks. For further information about Landlords Insurance, contact CGU today on 13 24 81.