Similar to home insurance, landlord insurance can cover your rental property and its contents against risks like fires, floods and storms. It can also cover the damage that tenants can cause to your contents and even loss of rental income.
What is landlord insurance?
Similar to home insurance, landlord insurance can cover your rental property and its contents against risks like fires, floods and storms. It can also cover the damage that tenants can cause to your contents and even loss of rental income. Some landlord insurance policies can cover holiday rentals and long term rentals.
Who should consider landlord insurance?
If you are a landlord, without landlord insurance, you could lose your valuable investment if it is destroyed or damaged. You could also lose income from rent if you’re unable to rent out your property during repairs or if your tenants break their lease or get evicted.
What can landlord insurance cover?
Landlord insurance vary in the benefits they provide. Your Westphalian insurance broker can help you find the right product tailored to suit your needs. Depending on your policy, landlord insurance may cover you against:
|Cover for flood and fire or explosion|
|Liability cover for injury or loss of life to a third party, or loss of a third party’s property on a building you own.|
|Cover for damage to landlord’s contents – like carpets, curtains, washing machines and portable furniture|
|Catastrophe cover up for declared natural disasters|
|Optional cover for loss of rent or an absconding tenant|
|Inflation adjustment if you need to make a buildings or contents claim|
|Cover for loss or damage caused by tenants or their visitors (exclusions apply)|
|Cover for loss or damage caused by electric motor burnout for appliances|
|Tax audit cover|
|Cover for demolition and removal of debris, and architects and engineering fees|
What usually isn't covered by landlord insurance?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on the nature of the product you are purchasing, the associated risk, the insurer and the requirements of your business.
Policies generally do not include cover for:
- Damage from tenant carelessness or neglect
- For rust, corrosion, gradual deterioration or wear or tear
- If your home is unoccupied for 90 continuous days
There are exclusions which are specific to each type of policy, which your Westphalian insurance broker can outline for you.