A lot of investors make the mistake of thinking building insurance is enough to cover their investment property.
Generally, landlord insurance is sold in addition to a home insurance policy and it specifically covers the risks that are associated with renting out a property, like liability cover, malicious damage and tenant default.
Here is a general guideline of what “typical” landlord insurance covers for both individual and strata properties:
- Damage
- Rental Loss/Default
- Liability Cover
- Burglary
- Contents
- Fusion
- Building inclusions
- Rebuilding Flexibility
- Underinsurance protection
- Demolition and removal of debris
In our view, these are the non-negotiable essentials of landlord insurance, so at a minimum, make sure your policy covers you for the following:
- Theft or burglary by tenants/guests
- Malicious damage/vandalism by tenants/guests
- Loss of rent due to tenant default
- Liability Cover
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