How cheap landlord insurance could prove costly
Property Managers who choose insurance on price alone risk making a costly mistake, leaving investors exposed.
EBM Insurance Brokers, RentCover Executive General Manager, Sharon Fox-Slater, said there was huge variation in the quality of policies available on the market.
“Property managers can help by alerting investors to the pitfalls and encouraging them to do their research thoroughly,” she said. “Cheap landlord insurance is cheap for a reason.”
“For example, some policies only cover malicious damage by a tenant, but accidents do happen so policies which include accidental damage are preferable.”
Other common shortcomings included:
- service levels that don’t live up to the glossy brochures;
- policies that exclude fires deliberately lit by tenants;
- high excesses;
- failure to cover landlords if the lease has ended and the tenant is staying on a month-to-month basis; and
- failure to cover arrears if a tenant has fallen behind in their rent.
For more information, watch our “12 Most Common Pitfalls When Insuring Your Rental Property”