Landlord insurance can cover your rental property and it’s contents against risks like storms, floods and fire. It can also cover the damage that tenants can cause to your contents – and even loss of rental income.
It can cover:
- flood and fire or explosion.
- Liability cover of up to $20 million
- 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.
- Catastrophe cover up to an additional 15% of the building sum insured, for declared natural disasters.
- Cover for loss or damage caused by tenants or their visitors (exclusions apply).
- Cover for loss or damage caused by electric motor burnout for appliances up to 15 years of age.
- Tax audit cover (cover options of $2,000 or $5,000).
A couple bought an investment property in Victoria and relied on the rent from the property to help cover their mortgage repayments. They rented the property to some tenants who caused extensive damage to some of the walls, floor coverings and doors and then left owing 14 weeks’ rent. Because the property needed these repairs, Janet and Ross were unable to rent it out again straight away.
As 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 their missing rent. This allowed them to make their repayments and repair the property so they could get new tenants in.