In Brisbane’s bustling world of property management, Housemark stands out as the number one specialist property management business. We pride ourselves on providing the highest level of service, treating your property as if it were our own and, very importantly, providing as much high value information as possible to ensure your investment journey is as smooth as possible. In this article, we will delve into a crucial aspect of property management: landlord insurance. Recent examples have highlighted the significance of having the right insurance coverage as a landlord. Let’s explore what you need to know to safeguard your investment.
Understanding the Need for Landlord Insurance
In a recent Housemark video, General Manager Natalie South emphasised the importance of insurance coverage for landlords. Let’s break down the key takeaways from the video to ensure you’re adequately protected.
1. No Waiting Period For Loss of Rent
One essential aspect of your landlord insurance policy is ensuring no waiting period to claim for loss of rent. Some policies require landlords to endure several weeks of unpaid rent before they can make a claim. For example, if your tenant hasn’t paid rent for four weeks on a $600-per-week property, you could be waiting 2400 days to recover your loss of rent. That’s a long time to go without income.
2. Minimal or No Excess on Loss of Rent
Excess is the amount you must pay out of pocket before your insurance coverage kicks in. It’s crucial to check if your policy has minimal or no excess when it comes to loss of rent. A high excess can affect the funds that should cover your mortgage payments. Imagine losing four weeks’ rent and then having to pay a substantial excess on top of that – it’s a situation no landlord wants to face.
3. Coverage For Pets
With recent changes allowing pets in rental properties under prescribed grounds, ensuring your insurance policy covers any potential pet-related damages at the end of a tenancy is essential. Don’t assume that your standard policy covers this – check and make necessary adjustments.
4. Review Your COVID-Era Insurance Policy
If you obtained your insurance policy during the COVID-19 pandemic, reviewing its terms and conditions is vital. Many policies from that period didn’t cover rent defaults. Housemark, being proactive, included rent default coverage in our policies. If you still need to review your policy, now is the time to do so to ensure you’re protected in all situations.
5. Consider Landlord-Specific Insurance
For the best coverage and claim conversion rates, landlord-specific insurance policies are recommended. These policies are tailored to the unique needs of property owners and often provide superior protection.
Next Steps
In the ever-evolving landscape of Brisbane property management, safeguarding your investment is paramount. Landlord insurance is your shield against unexpected challenges. Please don’t wait until it’s too late; review your policy today. Housemark is here to assist you in making informed decisions and ensuring your property is “Properly Managed.”
