Landlord Insurance Consulting
What is landlord insurance?
Like home insurance, landlord insurance can cover your rental property and its contents against risks like storms, floods and fire. It can also cover the damage that tenants cause to your contents and even loss of rental income. Unlike some landlord policies, Steadfast Direct landlord insurance can cover holiday rentals and long-term rentals.
Who should consider it?
Without landlord insurance, you could lose your valuable investment if it is damaged or destroyed. You could also lose income from rent if you are unable to rent it out during repairs or if your tenants get evicted and break their lease.
What can it cover?
Steadfast Direct landlord insurance can provide you with extensive protection if your investment property suffers loss or damage. Unlike some other policies, Steadfast Direct landlord insurance automatically includes some additional benefits. It is flexible enough to cater for both short term and long term rentals.
Did you know?
2.6m
2.6 million Australians own an investment property.
(CoreLogic, Profile of The Australian Residential Property Investor, 2016)
The most common claims are for employment practices like bullying, harassment and wrongful dismissal.
(Chubb 2016 Private Company Risk Survey)
Major claims by amount relate to crime – including employee fraud.
(Chubb 2016 Private Company Risk Survey)
Coverage may include
The exact cover you can receive depends on the policy that you take out. But to give you an idea, here are some of the benefits a Steadfast Direct landlord insurance policy may include:
Potential benefit |
|
|---|---|
| Automatic cover for flood and fire or explosion. | Automatic inflation adjustment if you need to make a buildings or contents claim. |
| Liability cover of up to $20 million for injury or loss of life to a third party, or loss of a third party’s property on a building you own. | Cover for loss or damage caused by tenants or their visitors (exclusions apply). |
| Automatic cover up to $10,000 for damage to landlord’s contents – like carpets, curtains. washing machines and portable furniture – and the option to increase cover for greater amounts. | Cover for loss or damage caused by electric motor burnout for appliances up to 15 years of age. |
| Catastrophe cover up to an additional 15% of the budding sum insured, for declared natural disasters. | Tax audit cover (cover options of $2,000 or $5.000) |
| Optional cover for toss of rent or an absconding tenant. | Up to an additional 15% of the building’s total sum insured. To cover demolition and removal of debris, and architects and engineering fees. |
What usually isn’t covered?
Each policy is different, but generally you won’t be covered:
- For damage from tenant carelessness or neglect.
- For rust, corrosion, gradual deterioration or wear or tear.
- If your home is unoccupied for 90 continuous days.
There are other exclusions which your Steadfast insurance broker can outline for you. In addition, there is a deductible/excess.
Case Study
Janet and Ross bought an investment property in Sydney’s inner west. They relied on the rent from the property to help cover their mortgage repayments. One year, they rented the property to some tenants who caused extensive damage to some of the walls, floor coverings and doors – and then left owing 12 weeks’ rent. Because the property needed repairs, Janet and Ross were unable to rent it out immediately.
Fortunately, the couple had taken out landlord’s insurance and included the rent default option*. They successfully claimed on their insurance to cover their repair costs – and just as importantly, their missing rent. This allowed them to make their mortgage repayments and repair the property quickly so they could get new tenants in.
