What is landlord insurance?
Landlord insurance is a type of insurance designed to help protect investment property owners from the financial risks that come with renting out a property. Some risks that landlords face is that tenants might not pay rent, may damage your property, or might refuse to vacate once their tenancy agreement is over. Landlord insurance can help cover some of the costs associated with these events.
What does landlord insurance cover?
- When you're looking into landlord insurance, it's important to pay attention to what each policy covers. Some policies cover the building only; some cover the contents inside it that belong to you (the landlord); and some policies cover both. When you're weighing up what kind of cover suits you, it's important to check the fine print and consider your own unique needs and financial situation.
With landlord insurance through People's Choice, you can choose to cover your building only, your contents only, or combine your building and contents cover under one policy.
- What is a 'building' and what is 'contents'? With Landlords Residential Property Insurance through People's Choice, you can choose to cover your building only, your contents only, or combine your building and contents cover under one policy.
Building: Your building is more than just the dwelling your tenants live in. It also includes anything attached to the building (like a deck or garage), plus, any improvements or renovations.
Contents: For landlord insurance, contents are the things you (the property owner) leave in the home that aren't fixed or installed, like a lawnmower or wheelbarrow. The exception is carpets and curtains, which are also considered contents items. For landlord insurance, this doesn’t include contents owned by the tenant. These items need to be insured by the tenants themselves under their own contents insurance policy.
Standard insurance cover
There are a few other situations in which you would be eligible for cover which you might not find on other forms of building or contents insurance. This is because, as a landlord, you have someone else living in your property who may be responsible for damage to the property or its contents.
If you get landlord insurance through People's Choice, you'll be covered for:
- • Flood
• Liquid damage.
There are also a few other situations in which you would be eligible for cover which you might not find on other forms of building or contents insurance. This is because, as a landlord, you have someone else living in your property who may be responsible for damage to the property or its contents.
With Landlords Residential Property Insurance through People's Choice, you're covered against:$(Underwriters rules 2)
- • Deliberate damage to your building and/or contents by tenants, plus
• Deliberate damage to your building and/or contents by guests or visitors of the tenant.
This cover is designed to help cover the costs that come from repairing damage, or from the loss of your property, if your tenants are at fault. This means you can have some peace of mind that you’ll have some financial help if the unexpected happens.
Additional insurance cover
Optional additional cover
Depending on your policy, you can also get landlord insurance to cover some other costs which might pop up. It's always important to check the fine print and consider your unique needs and financial situation if you're comparing additional cover options.
Here are some extras you can get insurance cover for through People's Choice:
• Loss of rent: if your property is lost or damaged as a result of a listed incident and becomes uninhabitable as a result, CGU will cover loss of rent for up to 12 months$(Underwriters rules 2)
• Strata title mortgage protection: CGU will cover the amount you must pay to settle your mortgage following loss or damage to buildings that you own as a result of an agreed incident under a strata title or similar plan$(Underwriters rules 2)
• Legal liability: CGU will cover your legal liability as a result of a listed incident that causes loss or damage to someone else's property, or death or bodily injury to other people, during your period of insurance. You can choose from $5 million, $10 million, $15 million or $20 million of cover. You can find a list of incidents which are covered in the product disclosure statement$(Underwriters rules 2)
• Rent default and theft by tenant: During the current COVID-19 pandemic, a decision has been made to switch off the Rent Default and Theft by a Tenant options across all IAG brands until further notice. CGU is not offering cover for Rent Default and Theft by a Tenant on new policies right now, so you can’t add it as an optional extra. There's no change to your cover if you already have a landlord Residential Property insurance policy.$(Underwriters rules 2)
What does landlord insurance not cover?
There are some instances where – even if you are a landlord – you might not be eligible for landlord insurance. You might not be eligible to get insurance online though People's Choice if your property:
- • Is currently threatened by fire
• Is for sale or being demolished
• Is listed by the National Trust, classified as Heritage Listed or as an Historical Building
• Has suffered an earthquake in the past 3 days
• Will be unoccupied for more than 60 consecutive days in the future
• Is used for farming, with an annual turnover greater than $10,000, or other primary production.
If any of these criteria apply to you, give us a call, or come and see us at a branch have a chat about your individual needs.
Likewise, contact us if your property is used as any of the following:
- • A bed and breakfast
• A boarding house
• Used for business other than for rental purposes
• A display home
• A hostel
• A houseboat
• A nursing home.