INSURING YOUR INVESTMENT PROPERTY
As a landlord you may have to replace items stolen or damaged by tenants. Landlord insurance can protect your investment property in much the same way as you protect your own home, says NAB.
When reviewing a rental application you’re hoping to choose the perfect tenant.
Even ideal tenants could lose their job, get injured or have their work hours reduced.
So it makes financial sense to protect your investment property with landlord’s insurance.
COVERING YOUR CONTENTS
You can insure the contents you’ve left for your tenants to use. You’ll be covered for the damage caused by your tenants or replacement costs if they’re stolen.
LOSING YOUR RENTAL INCOME
This type of insurance can cover you for loss of rent if your tenant doesn’t pay. You’re only covered if you still have a mortgage on the property, not if you own it outright. So if your tenant packs up and leaves without notice or they die, your rent default will be paid. You might also be covered for legal expenses incurred to recover the rent owed.
PROTECTING YOUR INVESTMENT PROPERTY
Nature is unpredictable and has a way of reminding us through crazy storms or life threatening fires. If this happens and you have building cover you’ll be covered for any damage caused by these types of natural disasters.
It might seem like another expense added to your budget plan but remember it can be a tax deductible expense. For instance, a couple of month’s lost rent could cost $2600. A new couch could be $500 and a broken window from storm damage another $500. This total cost of $3600 is probably higher than the cost of taking out landlord’s insurance. It makes sense to protect your investment property with landlord insurance and to consider the optional additional cover for Rent Default and Theft by Tenant.