Insurance covers major risks to give Landlord’s peace of mind and financial protection. But in order to have both of that, you must ensure that the insurance you get is appropriate to meet your needs as a “Landlord”. Luckily, there is a specific insurance for this –
Landlord’s Insurance! The sad thing however is that many Landlords are not aware of this and how cost effective it is. In effect, they always carry that unnecessary risk. So what is Landlord’s Insurance?
Landlord's insurance is a very comprehensive insurance that protects property owners from financial losses and liability that can be created from their rented properties.
How does it differ from other standard insurance? Here is the comprehensive COVERAGE you get and the BENEFITS that goes along with it:
| Coverage | What it Covers |
| Landlord’s Building | LIMIT: Up to the selected sum insured.Covers landlord’s building, fixtures and contents including outbuildings, walls, gates, fences, jetties, swimming pools against accidental damage or loss. |
| Damage by tenant | LIMIT: Up to building sum insured selected.Covers deliberate, malicious and intentional damage by a Tenant. |
| Rent Default | LIMIT: Up to 18 weeks loss of rent.If a tenant vacates the premises without notice, defaults in payingrent, is legally evicted from the rental property or upon the death of a sole tenant. |
| Loss of Rent | LIMIT: Up to 52 weeks loss of rent.Cover is provided if your property is uninhabitable due to an insured event. |
| Public Liability | LIMIT: $20 Million.Covers legal liability for bodily injury and third party property damage. |
| Landlord’s Legal Expenses | LIMIT: $7,500 With insurer’s consent cover is provided for legal expenses to pursue the rent default of the tenant. |
| Benefits for Building Insurance (LBI) |
Landlord’s Contents (including fixtures and fittings)
Up to 10% of the building sum insured |
Removal of Debris
Up to 10% of the building sum insured |
Professional Fees
Up to 10% of the building sum insured |
Authority Fees
Up to 10% of the building sum insured |
Fumigation Costs - following the death of a person
Up to $5,000 |
Exploratory Costs
Up to $2,500 |
Fusion of Motors (less than 4hp)
Up to $2,500 |
Removal of Fallen Trees
Up to $2,000 |
Landscaping Costs
Up to $2,000 |
Replacement of Locks and Keys - following theft
Up to $1,000 |
|
| Benefits for Protection Insurance (LPI) |
Deliberate, malicious and intentional damage to the building by the tenant
Up to $50,000 |
Theft by Tenant
Up to $50,000 |
Removal of Debris
Up to 10% of the building sum insured |
Fumigation Costs - following the death of a person
Up to $5,000 |
Fusion of Motors (less than 4hp)
Up to $2,500 |
|
To better understand how this works, here are sample cases where the insurance are applied:
Case # 1
Let’s say your property building is insured for $350,000. During the rental, a fire destroys the building and contents. What will be covered by your insurance?
| Possible Coverage and Benefits |
| Coverage (Landlord’s Building) | Up to $350,000 |
| Benefits (Landlord’s Contents) | Up to $35,000 |
| Benefits (Removal of Debris) | Up to $35,000 |
| Benefits (Professional Fees) | Up to $35,000 |
| Total Claimable Amount | $455,000 |
CLAIMABLE AMOUNT GIVES YOU A BRAND NEW HOME!
Case # 2
Now your property is insured for $300,000 and the tenant pays $350 weekly rent. Suddenly, your tenant vacates without notice,still owes you 12 weeks rent and has damage done of the walls in your home. It may take you 10 weeks to repair the property and to secure a suitable replacement tenant. What will be covered by your insurance?
| Possible Coverage and Benefits |
| Coverage (Loss of Rent) | $350 x 10 weeks = $3500 |
| Coverage (Damage by Tenant) | Up to $30,000 |
| Benefits (Professional Fees) | Up to $35,000 |
| Total Claimable Amount | $68,500 |
THAT’S 10 WEEKS OF LOST CASH FLOW RESTORED!
Premium
So how much premiums are you required to pay to claim these huge amounts?
Take advantage now of these VERY LOW premiums to get the most comprehensive and complete insurance package for your investments:
| State | Sub-State | Sum Insured | LBI Premium | LPI Premium |
| NSW | NSW | $250,000 | $915 | $340 |
| $300,000 | $1,045 |
| $350,000 | $1,175 |
| ACT | $250,000 | $735 | $300 |
| $300,000 | $855 |
| $350,000 | $970 |
| State | Sub-State | Sum Insured | LBI Premium | LPI Premium |
| QLD | QLD | $250,000 | $765 | $285 |
| $300,000 | $885 |
| $350,000 | $1005 |
| NT | $250,000 | $775 | $335 |
| $300,000 | $885 |
| $350,000 | $1005 |
| State | Sub-State | Sum Insured | LBI Premium | LPI Premium |
| VIC | VIC Metro | $250,000 | $630 | $275 |
| $300,000 | $730 |
| $350,000 | $830 |
| SA | $250,000 | $720 | $275 |
| $300,000 | $830 |
| $350,000 | $940 |
| WA | $250,000 | $680 | $285 |
| $300,000 | $780 |
| $350,000 | $880 |
| TAS | $250,000 | $710 | $275 |
| $300,000 | $820 |
| $350,000 | $930 |
Anything can happen anytime.
Landlord’s insurance provides protection to investors, financial support and peace of mind so you can focus on enjoying life with family and friends. Because you can’t and shouldn't waste your time and money on these potential losses! Well hopefully nothing happens but it is better to be prepared.
So stop hoping and GET COVERED now!
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