Wednesday, June 8, 2016

Why Do I need Landlords Insurance?

landlord insurance, best landlord insurance, rental property insurance

If you have decided to rent out a residential property you should consider landlord insurance.  Standard home insurance policies are often inadequate to cover you for situations which may arise from owning a rental property. Landlord insurance is designed to protect your investment against the unique risks associated with renting the property to tenants.

Malicious, Intentional, Deliberate Damage

One of the biggest expenses an Owner may face if not insured is caused by Tenants who maliciously damage the property.  This damage can be extensive and can be spread through the entire house.  Then there are tenants who put up numerous hooks on the walls and those that paint walls & make alterations without permission and whilst not vindictive can be costly to put right.

We provide up to $60,000 of cover – Excess free

Accidental Damage

While the majority of tenants don’t set out to cause damage, accidents do happen, just like they happen in your own home. Accidental damage is defined as a sudden unexpected event which is unforeseen and unintentional.

You are covered for up to $60,000 – $250 excess per event (capped at two)

Legal Liability

As an owner of an investment, you are exposed to the possibility of personal injury claims.  The abundance of “No Win – No Fee” legal services, has made making a claim easier.  Whether you are found liable or not, the costs associated with defending against the claim can be significant  

Our policy covers you for up to $20 million in liability cover, which includes the payment of damage awards, as well as lawyer fees and costs incurred against lawsuits.

Rent Default

Your Property Manager is a trained professional who actively seeks to place trustworthy tenants in your property.  However, even with the best of care, things can go wrong.  Tenant’s situations can change.   Events such as illness, loss of a job and marital breakdowns can cause even the best of tenants to struggle to meet their obligations.

We cover up to 15 weeks of rent for any tenant rent default situation including absconding tenants, failure to pay rent, tenant hardship, the death of a sole tenant and more – all completely excess free.

Loss of Rent

Recent natural disasters in Australia have highlighted the need for this type of cover.  Many properties have been severely damaged in recent times by fire or flood. Damage can also arise from a range of events such as Fire, storm, burst pipes and more. Tenants are immediately and automatically released from their obligations if the property becomes uninhabitable. The loss of rental income can quickly become a financial issue for the landlord.

Where an insured property is damaged by an insured event to the point where it is uninhabitable, we cover the loss of rent for up to 52 weeks with up to $60,000 of Landlord’s Contents Cover.

With the annual cost of the policy being less than a week’s rent and also qualifying as a tax-deductible expense, it makes perfect sense to ensure that your investment property is protected.

Landlord insurance can be compared to car insurance – would you hand the keys to your car to a complete stranger without it?  Don’t hand the keys to your investment property to a stranger without having some protection in place. 

St. George Underwriting Agency has been specialising in providing Landlord insurance for nearly 25 years, providing protection against financial loss.  For more information about how we can help protect your property, call our friendly team today or visit our website to learn more about landlord insurance.

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