In short, yes. Landlord insurance is not compulsory, but we cannot recommend it enough.
Even if your tenants take great care of the physical property, we cannot predict if their circumstances will change through the loss of employment, a relationship split, major illness or even death. In the event a tenant defaults on payments your landlord insurance can cover your loss of rental income until the property is occupied.
Also, standard home and contents policies do not usually cover your specific needs as a landlord.
Specialist landlord insurance covers:
- Rent default – if your tenant defaults on rent, leaves the property before the end of the rental period or is legally evicted, landlord insurance provides cover for lost rental income until your asset is re-let.
- Malicious or intentional damage – this includes deliberate damage and vandalism by a tenant or their guests to your property or contents owned by you within the property.
- Theft – of any contents within your property, by the tenant or their guests.
- Liability – this covers any claims made against you by the tenant or their guest.
- Legal costs – incurred in taking action against a tenant.
“There are several types of cover available,” explains Townsville Rentals manager, Leah Riddle. “To ensure our landlords have access to the best coverage available, we have regular reviews with our preferred supplier.
“We can suggest insurance providers that are reliable, experienced and able to give you the cover you need. We do understand you may have a preferred supplier of your own, and can work with them through any insurance claims you may need during the lifetime of your investment.”
Contact your property manager for recommended insurance providers, or email email@example.com with your enquiry.
Due the lengthy process of handling insurance claims, Townsville Rentals charges $110 per hour inc GST.