Know Risk is a community education program designed by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) to improve our understanding of insurance and how it relates to managing the many risks we all face in life.
Know how to protect your investment.
If you own an investment property, there’s a good chance that you may experience problems with property damage or tenants not paying rent — both of which can affect your finances. While you may receive standard house insurance for the property, these policies generally won’t cover damage caused by tenants or the non-payment of rent. An easy way to protect your property is to have landlord’s insurance.
What is landlord’s insurance?
Landlord’s insurance is an insurance policy that covers you, as a property owner, from possible financial loss associated with owning an investment property. Generally, the policy covers the building from damage from the usual causes such as fire, lightning, explosion, earthquake, storms, and floods but most landlord's insurance policies also have cover for:
- accidental damage
- malicious damage by tenants or their guests
- alternative accommodation costs
- theft by the tenant or their guests
- loss of rent if the tenant/s stop paying
- liability, including for claims against you by the tenant
- any legal costs incurred from action taken against the tenant.
Landlord insurance policies don’t usually cover any personal property belonging to tenants, or otherwise protect the interest of tenants.
It's important to remember that not all landlord protection policies are the same. Some, for instance, are designed to be taken out in addition to a typical home and contents or strata title policy, while others are more comprehensive.
How can I buy landlord’s insurance?
Most major insurance providers will offer landlord’s insurance. Start by contacting your home insurance provider first or doing a search on the internet. Before committing to a policy, be sure to check whether it offers the type of coverage that best suits you.
For more information please contact your insurance provider.