Landlord Insurance: What is it and why is it important? - by LARK Insurance
Many Australians have investment properties. In fact, in 2018 about 2 million Australians owned investment properties. From the average Mum & Dad investor who are looking to get ahead, to the super-rich property magnates who seem to own half the town, almost every Australian finds comfort in property investment.
Put simply, Landlord Insurance is home and contents insurance for your investment property. It provides similar covers including Public Liability, storm damage, theft, fire, etc. but also includes other options such as loss of rental income and damage from tenants. It's important to note these aren't standard on every policy and you will probably have to add them as extras.
Some people opt to rely on the bond paid by their tenants instead of having an insurance policy. And, while the bond can act as a form of insurance, it is extremely limited in nature. If the house is to be damaged and the bill to fix it is into the tens of thousands of dollars, do you have the cash reserves to pay the additional amount on top of the bond? For most people, the answer is no. With your investment property being such a significant asset, it's crucial to have the proper protection in place.
In most cases, this won't be an issue as long as this is disclosed to the insurer first.
In most cases, properties that are rented on a short-term basis carry more chance of a claim. This usually means that your premium will be higher as your property carries more risk, but it is still crucial that you have cover in place. If your insurer excludes short-term accommodation or won't cover Airbnb, we are able to assist as we have access to a wide range of insurers who will provide cover.
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