A home is the biggest investment one could have. Even if it’s not yet fully furnished, houses still cost a lot because of their property value itself. Aside from the house, you are also buying the lot where the house is and the price varies depending on the location.
Since homes are such a valuable investment, every homeowner would want to keep that property safe and secure from any loss or damage. This is the main reason why getting a homeowner’s insurance is important. However, if you’re planning to rent out your home or building even just for a short time, a homeowner’s insurance is not applicable then. You’ll need to get a landlord insurance in this case.
What is a landlord insurance and how does it work? Read along to learn more about this insurance policy.
A landlord insurance is what you need to insure your home or building when you’re renting it out to tenants whether short-term or long-term. A homeowner’s insurance only applies to a home if the owner dwells in it.
If there are damages or loss in your property caused by tenants and other people, you can’t hold the tenants liable if there are major malfunctions in your home and it won’t be covered in your homeowner’s policy. You’ll have nothing to claim for if ever these misfortunes happen to you. The landlord insurance covers it all and will serve as a financial net to help you rebuild your property in case of loss or severe damage.
If you’re looking for a good company that offers landlord insurance, Airbnb Insurance Australia is one of the best insurance providers in this country.
Regular Coverage of Landlord Insurance
Typically, a complete landlord insurance has these 3 main coverages.
- Property Damage – In case your home or furnishings get damaged due to irresponsible tenants, vandalism, fire, or any other natural disaster, this is the coverage that will protect you. If your home and furnishings are already old, it is advised that you choose one that offers replacement cost rather than actual cash value. It is more secure in helping you bounce back after that incident.
- Liability Protection – People who get injured in your property are your responsibility. Liability protection covers the costs when someone gets injured in your home due to a property maintenance issue such as building collapse. This coverage includes both medical and legal costs giving you more financial security and protection.
- Lost Rental Income – There are cases when the property becomes inhabitable such as severe pest infestation or heavy mould growth. You’ll need to vacate the property first to fix these issues before your home becomes live able again. During these times, you won’t get any rental payment because there are no tenants living in there. This coverage gives you temporary rental reimbursement based on how much you’re supposed to receive when you have tenants in your property.
Secure your best investment with a comprehensive landlord insurance policy for financial security and more peace of mind.