Why Property Owners Insurance Is a Necessity for Landlords
Whatever you call it, investment property owners insurance or landlord insurance, finding the right cover can be the difference between recording a steady income from rental properties or losing thousands of dollars due to property damage and loss or rent. The courts commonly side with tenants on disputes, which may leave you at a loss for money you are owed in rent. As a landlord, you have to watch out for false character references, which can then lead to months of unpaid rent, all while you are denied access to your property. This is why it’s important to have somebody on your side in case a renter starts costing you money rather than paying you.
Renting property can be a great way to earn extra income, but only if you are getting paid for it. In a perfect world, all tenants would have solid references, take care of your belongings and pay their rent on time. Unfortunately, bad tenants are often no easier to spot than good ones. If your renter fails to pay their rent, obtaining property owner’s insurance can assuage your difficulties by offering financial support.
Landlord insurance helps cover outside costs
Landlord insurance in Australia, whether it’s long-term or short-term landlord insurance, can assist you by paying the funds you’re owed or helping to pay certain legal costs, such as rental recovery or — depending on the level of cover — legal expenses and associated costs. If the tenant steals items from your property, causes more damage than their bond will cover or simply causes malicious damage after being issued with an eviction notice, traditional household insurance will rarely pay out. However, insurance policies that have been designed specifically for landlords will take into consideration all the common issues and help you reclaim as much money as possible.
Many owners think that a property manager can fix all their problems, but they cannot prevent mishaps occurring in the lives of renters. Tenants could lose their jobs, become ill or even pass away. If you already have cover with a home and contents policy, you can obtain collateral on top of that with property owner’s insurance. But if you’re starting fresh and don’t have any cover, there are comprehensive landlord insurance policies, whereby you receive the benefits of home and contents policies as well. If you already dealing with the stress of damage caused by a tenant, such as fire, carpet stains or an act of God, it can be helpful to only have to arrange details with one insurance agency.
If you own investment property, it makes complete sense to insure your assets and your earnings.