THE VALUE OF LANDLORD INSURANCE

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THE VALUE OF LANDLORD INSURANCE

Finding the right tenant with a good rental history, stable income, and a desire to treat a property with respect is the aim of every property investor and their property management agent.  Whilst in most cases everything works out well, there are always occasions when tenants or their visitors cause damage and problems for owners leaving them out of pocket.  In these cases the need for specialised insurance is important. 

Let’s start at the beginning and explore what landlord insurance is and what it’s designed to do. 

Most people are familiar with standard house and contents insurance that protects the owner against certain listed ‘insurable events’ (e.g. fire, theft, criminal damage etc).  The products are often purchased together to provide coverage for the building and its contents, although each product may be purchased separately. 

Landlord insurance covers investment property owners for similar insurable acts as outlined above in addition to covering financial losses connected with rental properties.  Some examples of these additional losses include damage caused by tenants or their visitors, tenants leaving without notice and owing rent, or rent losses caused by events that make the property uninhabitable to name a few.  Many insurers offer landlord policies and it’s important to note they aren’t all identical.  Each option should be thoroughly investigated to ensure it meets the owners needs. 

Owning a rental property exposes the investor to risks over and above those involving normal home ownership, and a good landlord insurance policy will provide them with appropriate cover and peace of mind that isn’t available in standard home insurance policies.  It’s also worth noting that many banks and financial institutions have made landlord insurance a mandatory condition of approving finance applications.  Landlord insurance should be regarded as an important part of the products and services list for all investors. 

“McAdam & Turnbull Realty strongly recommends landlord insurance to all our clients for the protection of valuable real estate assets and to provide security and peace of mind.” – Lachlan Evans

This blog is intended to give you a broad understanding of landlord insurance and its value to property owners.  It is not intended to be a complete list of the pros and cons of this specialised insurance product, and we recommend consulting an insurance specialist for all relevant information so you can make an informed decision.  Our agency is a distributor of EBM Insurance Products and can provide brochures on their products.

Our property management team led by Bronwyn Evans are focused on tailoring rental and tenancy solutions to meet your needs, and keep the experience as stress free as possible.  McAdam & Turnbull Realty are your local real estate professionals and property management specialists in Toowoomba and nearby surrounds.  You can follow our Principal and agent Lachlan Evans at www.linkedin.com/in/lachlan-evans-621bb583 or view our current rental and sale listings at http://www.mcadamturnbull.com.au and LIKE us on Facebook @

https://www.facebook.com/McAdamandTurnbullRealty/  

This publication covers real estate, property market, finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as professional finance or legal advice. McAdam & Turnbull Realty recommends that professional legal and/or finance advice should be obtained before taking any action on the basis of the general information presented in this publication.

 Written and Published by  www.presentprofessionally.com.au