The 12 most common landlord insurance pitfalls

Common pitfalls could leave landlords hundreds of thousands of dollars out of pocket thanks to sub-standard insurance, according to the new e-book 12 Most Common Pitfalls When Insuring Your Rental Property.
 
The book was written by Brett Clarke, who has more than 20 years experience in landlord insurance.
 
“The simple fact that not all insurance is the same makes it extremely difficult to weigh up the benefits of one policy versus another, and so often the glossiest brochure or cheapest price wins out,” says Brett, EBM’s National Marketing & Development Manager.
 
“I wanted to set down some of the key mistakes landlords make all too often when buying — or failing to buy insurance. Of course, I favour EBM, but this book can help landlords sort effective from inadequate insurance whether they end up choosing RentCover or another policy.”
 
To receive a free copy of the full e-book, contact Brett.

In brief, the 12 pitfalls are:
  1. Buying on price alone — look for “value” not “cheap”.
  2. Deliberate fire by tenants — some policies exclude this.
  3. Excess — how much, and can the bond be used as payment?
  4. Underinsurance — insuring for less than true replacement value.
  5. Malicious damage by the tenant — is it covered?
  6. Accidental damage — some insurers limit cover to the contents not the building.
  7. Check the qualifying (or disqualifying rules) — beware the fine print.
  8. Check for complete cover — some combined house and landlord policies offer less cover than specialist landlord policies.
  9. Court orders — do you need a court order to claim for rent default?
  10. The Body Corporate already insures my property — not for liability if someone hurts themselves inside.
  11. Periodic tenancies or lease continuation — some won’t pay out for claims if the written lease has expired.
  12. When you figure out “you don’t need insurance” — a reliable tenant and a good property manager is not enough to protect you.