Insurance advice for landlords.

Renting out your investment property to tenants is a great financial strategy. Likely your biggest asset, it’s important to invest in insurance that’ll help protect it. Insurance is part of risk management, covering you for unexpected, unforeseen costs.

Date:

18-Aug-2021

Category:

Lifestyle

Tags:

Author:

Amanda Smith

Insurance advice for landlords.

Renting out your investment property to tenants is a great financial strategy. Likely your biggest asset, it’s important to invest in insurance that’ll help protect it. Insurance is part of risk management, covering you for unexpected, unforeseen costs.

While the Adelaide Hills is a safe community, home to many families, the last 18 months have taught us that anything can happen (and almost overnight). Landlords experienced a loss of rent, as individuals battled unemployment. Many other changes occurred, courtesy of Covid-19.

As real estate agents, it’s not in our lane to provide specific insurance advice. We can, however, provide great contacts for insurance companies and brokers in the Adelaide Hills. In general, from the property management side, there are some must-dos for landlords.

Secure landlord insurance

Landlord insurance covers you for the common risks associated with renting out your property. This includes a loss of rent, malicious damage, theft, and legal expenses involved in evicting a tenant. Building and content’s insurance is another essential policy for you. If you have a pool, consider public liability insurance, too.

In every policy, compare the price, inclusions and exclusions, and extras and incentives.

Licensed, compliant tradespeople

Insurance traps are all too common, so take your time finding the appropriate coverage for you. From a maintenance point of view, the insurance provider wants to know the tradespeople are licensed and can provide a compliance certificate. Your tradespeople also need to be insured.

Check the excess

Make sure you’re aware of your excess on the policy. You don’t want to pay a $1,500 excess on a $1,000 job. Talk with your provider about your options and understand their appetite to pay out. Oftentimes, cheaper policies aren’t better.

Look into separate policies

It’s tempting to go with an insurance provider who can ‘do it all.’ But it might not be the best choice to group it all together. Speak to specialists in each insurance type for the best coverage. At this point, engage your accountant to learn what’s tax deductable and what isn’t.

Get a good property manager

The ease of renting out an investment house falls on the property manager. From get-go, applicants should be vetted well, with chosen tenants showcasing a positive rental history. For maintenance, good property managers check the licence, certification, and insurance of tradespeople – and recheck this throughout the life of the partnership.

This way, you as the landlord sleep well knowing there won’t be an issue stopping an insurance payout, if something happens. Not all property management teams offer this level of vetting and service. However, we go above and beyond to make life easier for you, the tenants, and the insurance providers.

As with all aspects of life, prevention is better than a cure. This certainly rings true for landlord insurance.

For real estate related questions, especially if you’re a landlord, we’re here to help.  Get in touch with our family of property managers and real estate agents.