Scott's Weekly Column

Why have landlord insurance?

If you have an investment property and want to ensure that you are fully protected against any unforeseen events that occur during a tenancy then we highly recommend that all our landlords have Landlord Insurance.

Many investors are unaware that landlord insurance is a different form of insurance to contents insurance.

To simplify, contents insurance covers the fixtures and fittings inside your property and is generally limited to claim where fire, flood or storm damage etc have occurred.

Landlord insurance costs approx. $400 per year and offers protection and reimbursement for damage to the property by a tenant, unpaid rent etc. Although all tenants are required to pay a bond when renting a property (4 weeks rent) if a tenancy goes bad and the tenant falls into arrears and causes damage to the property any losses over and above the bond are then claimable through your landlord insurance once an order is received from NCAT verifying that the costs are justified.

Even the best tenancy can start out well and run smoothly for months or even years but a change in circumstances such as a loss of employment or a change in a relationship can result good tenant suddenly becoming a problem tenant. Often these changes in circumstances can happen quickly and it doesn’t become evident to the property manager until it’s too late.

I have only given you a brief outline here on the importance of landlord insurance, if you would like to discuss this in more detail then why not pick up the phone and talk to one of our professional property managers at our Coffs Harbour or Sawtell offices, their advice is free but it could save you $$$ thousands if a tenancy goes bad.