Not all tenants are bad, but you do need to make sure you are covered should something go wrong. While most tenants take good care of the proper they are leasing, those that don’t may intentionally cause extensive damage. Intentional damage is not covered by many standard home insurance policies nor is the failure to pay rent.
The valuable common features of a Landlord Insurance policy include:
- Malicious or intentional damage to the property by the tenant or their guests
- Theft by the tenant or their guests
- Loss of rent if the tenant defaults on their payments
- Liability, including for a claim against you by the tenant, and
- Legal expenses incurred in taking action against a tenant.
It’s important to remember that not all landlord protection policies are the same. Some, for instance, are designed to be used in addition to a typical home and contents or strata title policy while others are more comprehensive.
Some policies allow cover for the contents of the property. This is particularly important if you rent a partially or fully furnished property. Speak to your First National Property Manager and they will be able to help you find the right policy.