Harcourts Canterbury

The Canterbury
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Insurance matters

As a landlord, it is crucial to familiarise yourself with your insurance policy in case the unexpected happens. Make sure you are very clear on what your insurance covers you for and if ALL your chattels are included in your contents policy.

It is important to be aware of your responsibilities as a landlord and ensure you meet all the requirements regarding your insurance to best protect your assets should you need to make a future claim.

Your property manager will be able to give you more information, however you should ask yourself the following questions.

Is your investment property fully consented?

It is essential to ensure that if you are renting out a property it is fully permitted and able to be used as a rental property. Should you not have the necessary permits then you may void your insurance policy as well as your ability to charge rent on the property. 

Do you need a separate landlord insurance policy?

Are you aware that your standard insurance policy may not be enough to protect you if the worst happens and you are out of pocket due to a tenant abandoning the property or failing to pay the rent?  Many landlords do not realise their standard home and contents policy may not insure them for everything to do with their tenants. Having a landlord protection policy covers you for tenancy-related incidents. Tip: Be sure to check whether your policy is inclusive of damage caused by methamphetamine contamination, as this is not always the case.

Are you covered for malicious damage?

Some landlords assume malicious damage is automatically covered by a standard landlord insurance policy, but each insurance company has different rules. Compare different policies to decide which gives the best coverage.

Are you keeping sufficient tenancy records?

Checking your policy’s requirements again is crucial when it comes to keeping tenancy records, as many insurers will ask for further documentation or records following a claim. For example, there are many insurers in the market today who require landlords to undertake formal property inspections every 3 months, with a written report evident on file. 

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