Being a landlord is a very tough job, it is an expensive business. You will have to deal with prospective tenants, choosing the tenants, making sure they pay on time, making sure they take care of the property, they abide by the rules, and it is also your duty to arrange for the major repairs. Although it is a good investment and you can definitely make some money out of it, it requires dedication and hard work for even just one room or unit, depending on your business, out of a number of them.
In short, when you are a landlord, there are many things that can go awry when you let other people, your tenants, handle the property you own but they believe is somewhat theirs. Well then, for sure you would be thinking, “Do I need landlord insurance in NSW?” The answer is yes. Best to be sure that you have the right protection in place.
Having a landlord’s insurance is not mandatory. Although, the policy of a landlord can have numerous features that are useful, like building insurance, accidental damage cover, and financial protection against loss of rent.
The building insurance of a landlord protects the bricks and mortar. In the case of a fire or flood (knock on wood!), the insurance covers the rebuilding costs. It typically includes the replacement of kitchen units and bathroom suites, and there are some that cover sheds, garages and, and other buildings. Know first, the rebuild cost of your property before taking out the building insurance.
The content insurance of a landlord is vital. This is most especially true if the property that you will allow to be rented is already fully or partially furnished. Accidental damage is also given if you ask for extra cover. Note, however, that the tenants’ possessions are not your responsibility.
The liability insurance of the landlord is typically extra to most policies but is a requirement when you are offering a student or social housing. Since you will not be notified of who keeps coming back and forth from the property, this insurance will be able to protect you in any unfortunate event.
When it comes to a point where the property cannot be inhabitable for a time, any rent that is missed out on can protected by the loss of rent insurance. This is very important when you have a large mortgage was taken out on the property and the monthly repayments are what you rely on. If that is the case, you would not have to be in agony by losing the property altogether.
The legal expenses of the insurance of the landlord cover the expenses for the legal disputes between the landlord and the tenant.
The emergency cover of the landlord will provide the costs for any emergency repairs.
Adding up the costs, it is clear to see that spending on insurance is high. No need to panic, however, since there are some that are not too expensive. Insurers tend to offer several types or bundle them all together in one policy in most cases. But the cheapest you can find should still be thought over! Since renting out property is very risky, make sure that everything from head to toe is covered in any unfortunate cases.
