What is Landlord Insurance Cover and is it Worth Having?
Many responsibilities come with being a homeowner. Even investors who want a low level of involvement in their investments have obligations. It is essential to take the necessary steps to secure your property, especially if you are leasing or renting it out. With landlord insurance cover, you have peace of mind that you are covered for all unforeseen eventualities.
You may be asking what landlord insurance is and if you need it, so we’ve taken it upon ourselves to dive deeper into the topic for you. To begin, let's take a look at what landlord insurance is.
What Is Landlord Insurance Cover?
Landlord insurance is a form of insurance coverage developed for landlords to protect them against the losses that come with renting out their investment properties. Landlord insurance can cover all types of investment properties, including a house, unit, apartment, or townhouse.
What Does Landlord Insurance Cover?
Landlord insurance cover can protect you in the following instances:
1. Tenancy Cover
Tenancy cover as a part of landlord insurance encompasses the following:
- Damage by a renter or guest
- Liability
- Rent default
- Loss of rent
2. Building Cover
Structural damage to the building as a result of the following:
- Floods
- Fires
- Storm damage
- Vandalism
- Vehicle collisions etc.
3. Contents Cover
Damage to the interior components of the property, such as the carpet, lighting, curtains, and appliances as a result of:
- Fires
- Lightning strikes
- Storm damage
- Floods
- Falling trees etc.
What Is Not Covered By Landlord Insurance?
Even though the majority of things that result in property damage or a loss of rental income are covered, several things are excluded, including:
- Wear and tear are not covered
- If you damage the property, it is not covered
- Insect and rodent damage is not covered
- Damages on unrented areas are not covered
- Pet-related harm is not covered
How Much Is Landlord Insurance?
Insurance rates are affected by several factors, including:
- Property type
- Location of the property
- Value of the property
- The structural integrity of the property
- The history of your claim
After accounting for all of this, it's nearly impossible to provide an actual cost for insurance. Most insurance companies offer online quotes to help you get an idea of how much you might need to spend.
Conclusion
You need landlord insurance cover if you plan to rent out your house and keep it protected. You can't rely on your homeowner's insurance to cover damage that occurs on a property you rent out since the policy only covers your primary residence.
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Disclaimer: The information provided is for guidance only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. PRD will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
