Landlords Insurance – The importance of adequately protecting your investment property.  

15/11/2019

Landlords Insurance – The importance of adequately protecting your investment property.   

I ask you to imagine the dreadful situation that could occur if let’s say an elderly tenant passes away in a rental property; Tragically undiscovered for some time as her rent had been paid in advance.
 
The consequence of such a tragic incident may be a major refurbishment of the premises being required. Taking up a lot of time to complete, costing large sums of money and of course there is the potential loss of rental income.
 
The owner may believe they are covered for the loss of rent and the cost of the refurbishment by a Landlord Insurance policy, only to discover that the policy did not cover what is termed ‘death damages.’
 
Another incident becoming increasingly common unfortunately are tenants and the use of ‘crystal meth’ (methamphetamine) also known as ‘ice’.
 
Not a problem for you, you might think?
 
Well the scenario is that this product, if it is used heavily, enters curtains, carpets, any furniture in the house and can cause problems for subsequent tenants, which means that a rental property will require extensive cleaning once the substance using tenants move on.
 
In worst cases, a property can be left uninhabitable and pose a serious health issue – there’s a real cleaning project to encounter!
 
The right form of cover
 
It really is important to have specialist insurance.
 
Many owners have the impression that building insurance should be sufficient to cover them for these types of problems – but not so. Building insurance will certainly cover against fire and flood – that sort of thing, but not loss of rental income and various tenant issues.
 
Domestic Violence
 
There’s one further issue in regards to the Tenancy Act that landlords should be aware of and that’s regarding domestic violence as it too relates to landlord protection insurance.
 
  • Tenants who are victims of Family Domestic Violence are now able to give 7 days’ notice to a lessor and leave a rental with approved documentation.
  • Tenants who are victims are now able to apply to a court to have the perpetrator removed from the tenancy agreement and remain in the home.
  • Tenants who are victims are also now able to change the locks on a property without
permission.
 
If you have any queries on the subject of Landlord’s Insurance we warmly welcome you to contact us on 9414 9055.
 
 

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