Finding the right tenant for property owners is a key objective of every professional Property Manager. The right tenant should have a good rental history, stable employment, and a proven record of looking after rental properties. However, like most things in life, sometimes a tenancy doesn’t work out! In rarer cases property damage and loss of rental income caused by a tenants actions can leave a property owner out of pocket, unless they are appropriately insured.
In this feature we’re going to touch on Landlord Insurance and the security it can provide property owners.
Most people would be familiar with standard house and contents insurance that is designed to protect people against specific ‘insurable events’. Some examples of an ‘insured event’ include fire, theft, and criminal damage. Whilst house and contents insurance may be purchased separately they are often bundled together to provide a cost effective approach.
Side stepping into ‘Landlord Insurance’ you’ll find the product generally covers property owners for similar insurable acts as outlined above, in addition to specific financial losses connected with rental properties. There are a few common examples of insurable acts specific to rental properties and they include damage caused by tenants or their visitors, tenants abandoning a property without notice (owing rent), or other losses caused by events that make the property uninhabitable.
Landlord Insurance is a readily available product with many insurers offering different options. At this time we’d make the point that landlord insurance policies offered by insurers aren’t all identical. Ray White Property Management strongly recommends that you investigate the available options to ensure the one you choose is cost effective and will meet your needs.
It’s fair to say that owning a rental property exposes an investor to a range of potential risks above those seen in normal home ownership. The potential benefit of a good landlord insurance policy is peace of mind that isn’t available in standard home insurance policies. It’s also worth noting that many banks have made landlord insurance a mandatory condition of approving investment finance applications.
The team at Ray White Toowoomba Property Management recommends landlord insurance to all clients for peace of mind and the protection of valuable real estate assets.
This feature is intended to give you a broad understanding of landlord insurance and its value to property owners. It is not intended to be a complete list of the pros and cons of this specialised insurance product, and Ray White Toowoomba Property Management recommends consulting an insurance specialist for all relevant information on the product before making any decisions.
If you’d like further advice or information regarding Landlord Insurance or wish to obtain a quote Ray White Insurance are available to help, alternatively please don’t hesitate to contact our office and we can arrange a call from a specialist.
NB: This publication and others displayed on the web and social media covers real estate, property market, finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as professional financial or legal advice. Ray White Property Management recommends obtaining professional legal and/or finance advice before taking any action on the basis of the information presented in this publication.
Written by www.presentprofessionally.com.au