Are you covered?
We want to provide you with excellent service and advice. We believe it’s our job not only to advise you on potential risks, but also to help you reduce risks wherever possible. It’s much better to pay for security than to pay for the mistakes of your tenants!
That’s why we strongly recommend using a specialist landlord insurer.
What is landlords insurance?
Fair wear and tear is anything that happens through the normal use of the property. Landlords insurance IS NOT home and contents insurance. Most home and contents insurance policies DO NOT have adequate landlord insurance coverage. This means they may not cover you for lost rent or damage caused by your tenant.
Whilst most tenants will look after your property and will pay their rent on time, things can wrong even without bad intent from your tenant.
For example, your tenant has just lost their job and can no longer afford to pay their rent. Perhaps they’ve accidently damaged something in your property and can’t afford to pay for the repair.
Here is a list of items to check for in a landlords insurance policy:
Loss of rental income – protection from loss of rental income as a result of scenarios.
Contents – protects those furnishings you forget, like curtains, carpets, blinds and light fittings.
Building – protects your building against loss or damage caused by your tenants, their family or their invited guests.
AREN’T THEY ALL THE SAME
This means a policy recommended by just any insurer may have exclusions in the product disclosure statement which could prevent you from making a claim. To make things easy, we have broken down an example claim below and have compared the 2 policies:
Terri Scheer Policy
Waiting Period or Time Not Covered: NIL
Policy Assumptions: NIL (i.e.: Some policies assume the full bond can be used for rent and this is deducted from the total claim regardless of what the bond was spent on).
Total Rent Paid Back to Landlord = $1800
Non-Terri Scheer Policy
Waiting Period or Time Not Covered: 30 Days
Policy Assumptions: The full bond can be used towards rent and this amount is deducted from the policy.
Total Rent Paid Back to Landlord = $0 ABSOLUTELY NOTHING!
Every property and owners situation is different, so it is important that you do your own research to find a policy that suits you. We have provided general, non-specific advice only and recommend speaking to the insurance provider directly for more information.