Residential Landlords Insurance
In our previous updates to owners we have discussed the importance of having specific Landlord Insurance. It’s clear from these examples that Landlord Insurance, especially from a specialised provider like Real Landlord Insurance, can be invaluable for property owners who rent out their properties. Real Landlord Insurance is designed to address the specific needs and risks associated with rental properties, which may not be adequately covered by standard homeowners’ or investment property insurance.
Having Real Landlord Insurance can offer peace of mind to all our landlords, knowing that they have a financial safety net in place to deal with tenant-related issues and property damage for as little as $369 per year.
Here are a few examples that we are aware of:
- Real Landlord Insurance can provide protection in unexpected situations that could lead to financial loss.
In Example 1, this landlord faced a situation where her property was contaminated with methamphetamine. This rendered the property uninhabitable, which could have been a significant financial burden. However, with the Landlord Preferred Policy, the landlord received monthly rent claim payments to cover the costs associated with testing, cleaning, and renovating the property. The total claim payment amounted to $15,868, with a $500 excess.
- Landlord Insurance often includes coverage for rent loss due to tenant-related issues. In Example 2, the Real Landlord Insurance helped the landlord recover lost rent payments during a lengthy eviction process. This highlights a scenario where the tenant failed to make rent payments, causing financial strain on the landlord. The legal process to remove the tenant was complicated and time-consuming. With the Landlord Preferred Policy, the landlord was able to claim for the loss of rent, ultimately receiving a total claim payment of $6,932. The excess in this case was one week’s rent.
- Even seemingly perfect tenants can face unexpected hardships that lead to rent payment defaults, as seen in Example 3. Landlord Insurance can assist in such situations by providing coverage for the damage caused by the tenant and helping the landlord recover financial losses. In Example 3, the landlord had a seemingly ideal tenant who had been in the property for several years. Unfortunately, a sudden change in circumstances led to the tenant losing his job and subsequently causing significant damage to the property. Through the insurance, the landlord received support throughout the claim process and a total settlement of $16,842. The excess applied in this case was $800.
Please also note that all tenancy agreements now require the name of the landlord’s insurers and the excess. If we do not have these details on the agreements, you cannot claim the excess at the tribunal.