Our Relationship Management team

Home and contents policies typically offer protection for insured events such as fire and storm. However, they often do not cover loss of rent and tenant damage. It is recommended landlords find a specialist insurance policy offering extra protection not covered in standard home and contents policies.

Example: A tenant suffers a job loss and stops paying rent for six weeks before unexpectedly moving out of the property. Upon inspection, it was discovered there was malicious damage to the walls, including two large holes in the hallway. Check out the below table to find out what typically is and isn’t covered in different policies…

No. The amount of cover and limits offered varies from insurer to insurer. That’s why it’s important to choose the right landlord insurance policy to protect an investment and reduce the risk of financial and emotional stress. Landlord insurance often offers cover for four main areas: tenant damage and loss of rent, contents insurance, building cover and legal liability. Depending on your property and requirements, you may need a policy that covers ALL four, or only one.

If you own an apartment, villa or unit (a strata titled property), the body corporate may insure the building and common areas in the property – including common hallways, garden and driveway. Because these are covered through the body corporate, many landlords assume they don’t need to purchase landlord insurance themselves – this is not the case. The body corporate does not offer protection for unit contents including non-fixed appliances, furniture and electronics, and does not offer protection for loss of rent or legal liability.

Example: During a storm, water entered a landlord’s top-level apartment causing damage to the ceilings, walls, carpets and blinds in the lounge and bedroom. Check out the below table to find out what typically is and isn’t covered in different policies…

A lot of the time, the bond is just not enough. For example, a tenant may decide not to pay the last four weeks rent because they figure ‘that’s our bond anyway’. This leaves no money for cleaning and minor repairs.

NOTE: Some polices require a bond equivalent to four weeks rental value to have been taken before you are covered for loss of rent and other policy features. Make sure you collect the right amount of bond to ensure your policy is valid when it comes to claim time.

People seem to think there is a high risk of animals causing damage in rentals – a key reason landlords say ‘no’ to pets. However, truth is, more damage is caused by a human than a pet, which is why more and more property owners are extending their tenant-pool to allow those with furry friends. In addition, pet damage can be covered with a landlord insurance policy, offering protection for domestic animals living at the rental property.

When you make a claim, you may be required to pay a small amount of the cost (called an excess) and the insurer pays the rest. Not every policy has the same level of excess, and excesses may apply in different situations.

Example: If your investment property is battered in a storm, the cost of repairing damage may be $6,000. If the excess is $500, you would be required to pay this fee while the insurer pays the remainder. The excess can often be reduced from what the insurer pays, meaning you would receive $5,500 for the claim.

There’s ongoing panic and chatter about the increase of meth contamination in rentals. Landlord insurance cover for the cost of meth contamination clean-up depends on the individual insurer and the specific policies they offer.

If you think landlord insurance is too costly, think about how much more expensive it is to pay the cost to completely restore a home in the aftermath of a natural disaster. Premiums can cost just a couple hundred dollars a year. That is peace of mind knowing you have protection for your property, for the approximate cost of a large coffee a day.

A periodic tenancy agreement (or month-to-month agreement) may be beneficial as it allows for more flexibility in the tenancy. Many landlord insurance policies require a fixed-term lease to be in place at the time of a loss so make sure you understand your coverage regarding periodic leases and lease continuations.

Insurance companies are a popular villain. However, when you purchase a policy from an insurer, it is a commitment to assist when things go wrong, and you will be paid out if it falls within the policy’s terms and conditions. If you don’t agree with the outcome of a claim, insurers are required to have a dispute resolution process in line with the General Insurance Code of Practice, which includes the ability for you to escalate your complaint to an external dispute resolution body such as the Australian Financial Complaints Authority. This ensures a fair approach between insurer and client when a claim needs to be made.