Written by Tania El-Halabi
ATTN: INVESTORS AND LANDLORDS
Do you have landlord insurance?
With the changes to the Residential Tenancy Act coming into effect by 1st July 2020, it has become more important than ever that you as a landlord are protected and can effectively sustain your investment property.
What is landlord insurance?
Landlord insurance is an insurance policy that generally covers an investment property for the financial risks associated with renting out your property including loss or damage caused by tenants. It also can include:
• Loss of Rent
• Legal Expenses when going to the tribunal
• Malicious Damage caused by tenants
• Accidental Damage cause by tenants
• Fire/Flood/Water Damage
• Liability for tenant injury or other loss
Why do I need it?
There are a few things you should check that your policy includes when considering landlord insurance and vary from policy to policy. It is important to get landlord insurance as while tenants may treat your property as if it were their own; Sometimes accident can happen. For example, I once had a property where tenants accidentally left their tap running with the plug in and flooded their entire apartment and downstairs apartment. Thankfully in this case, the tenants paid for the $40,000 worth of damages, however, what if they didn’t? We take them to VCAT and how long will it take us to get that sort of money from someone? What if their insurance won’t cover them for the damages?
It’s good to know you are covered.
What if I don’t have it?
Re-consider and get it while you can. With the change in the rental laws, it is more important than ever that you cover all your bases with a good policy. After all, according to the Australia Taxation Office, your landlord insurance policy premium may be tax deductible as it is an investment expense.
How do I find out more?
To find out more information about landlord insurance, who I would recommend to insure with and/or the new reforms to the tenancy act coming into effect in 2020, feel free to email or call me and I will be happy to help.
26 February, 2020