A real estate agent checking why a tenant was not answering any calls arrived at an insured property to find the premise vacant after 5 months into a 12 month rental agreement, with severe internal damage to wall structures, fixtures and fittings. A search was conducted to locate the tenant who had vanished leaving $31,430 in damages. The insurer paid for damages and the premise was relet 4 months later. The tenant had Rent Default cover and received 12 weeks rent.
Landlord insurance is a type of insurance policy designed specifically for property owners who rent out their properties for residential purposes. It typically includes cover for damage to the building, contents left for tenant use, rental loss, and liability protection. Having landlord insurance can help protect you financially if something unexpected happens, such as damage to the property or loss of rental income.
A product disclosure statement (PDS) is a document that provides information about the key features, benefits, and risks associated with a particular insurance policy. It’s important to review the PDS when choosing landlord insurance to ensure that you’re getting the coverage you need and that you understand the terms and conditions of the policy.
If you need to make a claim on your landlord insurance policy, you should contact your insurance provider as soon as possible. They will guide you through the claims process, which typically involves filling out a claims form and providing any necessary documentation to support your claim.
Some landlord insurance policies offer cover for loss of rental income due to tenant default. This means that if your tenant stops paying rent, you may be able to make a claim on your policy for lost rental income. However, it’s important to review your policy carefully to understand what’s covered and any exclusions or limitations.
Some insurance providers offer discounts for landlords with multiple rental properties. However, it’s important to shop around and compare policies to ensure that you’re getting the right coverage at the right price. Additionally, you should review the PDS carefully to understand the terms and conditions of the policy and any discounts that may apply.
Whilst many items covered in Landlord Domestic Insurance will apply to a holiday rental property, there may be differences, as the property is not being used for long-term residential purposes.
It is important to advise your insurance broker if the property is to be used as a holiday rental, so that your insurance provider has an accurate picture of use, and subsequent risks, and can ensure the coverage you receive is appropriate. If you don’t inform the insurer, coverage you expected to have may be void.