THE INS AND OUTS OF
LANDLORD’S INSURANCE

As an investor renting out your property to tenants, you face unique risks compared to an owner-occupier.

For example, what happens if a tenant doesn’t pay their rent or trashes the place? Or if your property is damaged in a fire and can’t be rented out?

Without the proper insurance, you could end up significantly out of pocket, and regular home insurance doesn’t cover investments.

That’s why landlord’s insurance is one of the most important purchases an investor can make. Here’s what you need to know.

What is it?

Landlord’s insurance is a way of protecting your investment property against damage to the building caused by both natural events and tenants.

Depending on the policy, it can also cover you against lost rent in certain situations, for example if your tenant defaults or if damage caused to the property leaves it unfit for rental.

What’s covered?

Every policy is different, so you need to do your research to find one that’s right for you.

Make sure to check what acts of nature are included, the extent of cover to your building and fittings, and the situations in which you’ll be covered for loss of rent.

If you rent your property furnished, keep in mind that standard landlords insurance will only cover some fixtures and fittings.

However, often insurers will allow you to take out additional cover for damage to any furnishings or whitegoods too.

Importantly, most policies include legal liability cover that protects you against injuries to tenants caused by your negligence.

How much does it cost?

As with any insurance, the cost of a policy can vary widely between providers and higher levels of cover will be more expensive.

A higher excess or longer waiting period for benefits should reduce your premium, and look for discounts available for bundling landlord’s insurance with other cover from the same provider.

By doing you research, landlord’s insurance should give you affordable peace of mind that you’re covered if something goes wrong.