In our experience as property managers you’re more likely to have a car accident than you are to have tenant skip or leave your property with significant damage. It does happen, and when it does you are going to wish you had a good quality landlord insurance policy to cover you for damage and loss of rent.

Like any insurance policy you don’t want to buy it, but when you need it you’re glad you did.

Not All Insurance Policies Are The Same

There are huge differences in the level of cover provided a large range of landlord insurance policies currently being offered on the market.

We just took over management of another property for an existing landlord. They were sick and tired of rent always being late and having no communication from the agent and as it turns out, no routine inspections. We inspected the property. The house was in great condition although it looked like it just had the massive “oh crap the agents coming spring clean”. The back yard was like a jungle and we could not access the garage. Very suspicious!

The tenant realised we were a bit tougher than the last agent. When he fell behind in rent again and was served a breach notice he didn’t fight it and left.

Once vacant, we were able to access the garage and also spoke to neighbour who had his nose over the fence. The neighbour advised the overgrown back yard was covering a rubbish tip and the double garage was floor to ceiling household rubbish. The cost to the landlord was $5000 just for the rubbish removal. On top of the rubbish removal there was the clearing of the jungle in the back yard, other maintenance items requiring attention and loss of rent from the tenancy and whilst the re instatement work was being completed.

Let’s call it a significant sum of money.

The landlord had advised us they had landlord insurance but did not specify a policy. We now know to ask them to specify which policy they currently hold.

It turns out the policy was a very basic generic policy and not from a specialised landlord insurance provider. It cost more than double our recommended policy and the landlord was not covered for any of the damage or loss of rent. We’re still struggling to understand what the policy was for.

Peace Of Mind

Wherever there is risk and the chance you could be left significantly out of pocket you should always take out a related insurance policy to cover yourself. Don’t just take out any policy. Most landlord policies from banks or other non- specific insurers are useless.

The landlord insurance policies that offer the best coverage and provide the best outcomes for landlords only cost a few hundred dollars per year. That’s very inexpensive peace of mind.

An experienced property manager should be able to advise the best policies which provide the maximum cover in all circumstances.

Check your policy for what you’re covered for, or call us and we will be only too happy to share our advice and recommendations with you.

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