Harcourts Canterbury

The Canterbury
Home Team Advantage

Insuring your investment.

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One aspect of owning a rental property that’s too often overlooked by owners is the need for landlord insurance.

Too many landlords assume a standard home owner policy will do the job, only to find they’re not fully covered if, or when, the worst happens.

Landlord insurance is designed to specifically cover rental property. A good policy should include cover for:

  • Defined natural elements
  • Accidental and malicious acts by tenants
  • Legal liability
  • Loss of rent
  • Legal costs in chasing unpaid rent
  • Loss or damage to contents owned by the landlord on the property

A good landlord insurance policy should free property owners up from any worry about paying for damage or recovering lost rental, whether it’s through unruly tenants, accidents or even the death of tenants.

Under the Residential Tenancies Act 1986 landlords are required to pay the premiums for this insurance themselves and it should be included in your financial planning before buying an investment property to rent out.

Your property manager will be able to assist you with information about landlord insurance and making sure your rental property is fully covered.

When you are organising coverage make sure you are very clear about the requirements for making claims as some insurers will need landlords to prove they have completed a thorough tenancy selection process before honouring damage claims.

You may also choose to insure any chattels (such as furniture) that are listed in the tenancy agreement. Any damage to them won’t be covered by the tenant’s contents insurance.

Talk to your Harcourts property manager about Rental Protect insurance available through Mike Henry Insurance. The Rental Protect policy, provides comprehensive cover against defined natural events, accidental and malicious acts by tenants, your legal liability and loss of rent. It will even cover legal costs in chasing unpaid rent and the removal of rubbish tenants leave behind.

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