While landlords share most of the same risks that a regular homeowner is exposed to, they also face very unique situations that can pose significant financial losses. Because of these unique risks and situations, you have to make sure that your insurance policy fully covers you for all eventualities.
Choosing a policy that doesn’t cover all the risks you could be exposed to, and the undervaluation of the property, are two of the most common mistakes we see landlords make.
The following quick guide will highlight some details about these risks to help you understand why this is a critical aspect of protecting your investments.
What Does Landlord Insurance Cover?
The basics of a landlord insurance policy are similar to a regular home and content insurance in that these policies are designed to protect you from financial losses in the event that the building or contents get damaged, lost, or stolen.
However, when you are not personally occupying the home, then there are numerous situations that can cause crippling financial losses.
Here are a few of the most critical items you need as a landlord:
– Rent loss due to insured events like flooding
– Rent default by the tenant
– Accidental damage and natural disaster cover
– Damage or theft by the tenant or persons visiting the tenant
– Legal costs to cover tenant evictions
What Risk Factors Could You Be Exposed To?
These are the 5 most important focus points we assess for all of our landlord clients, and in many cases where we deal with new clients, one or more of these have not been adequately assessed.
1 – Underinsurance
If you don’t correctly value your property for rebuilding and replacement costs, then you can find yourself in a situation where you are underinsured. As a result, the amount of money paid out for a claim might only cover a fraction of the actual losses.
This most commonly happens to landlords that renew their existing policies from year to year without recalculating the value. You would be surprised how much your valuation can change over just a couple of years.
2 – Full Flood Cover
In most online quotes, full flood cover is optional. While it does increase the cost of the policy, this is where huge losses can happen in certain flood and storm situations. Without very specific policy wording, you can be open to very serious risks, which is why we always choose policies with full flood cover for our clients.
3 – Full Rent Loss Cover
In the event of an insured claim being processed, it is quite possible that the property may not be inhabitable for a while. Not only do you need to cover the costs of repairs and replacements, but you will be out of pocket when it comes to your rental income.
4 – Rent Default Cover
This is a very common worry for all landlords, and when this happens, there is no quick and easy solution. You could be in a situation where your rental income is gone, but your mortgage payments need to continue to avoid falling into arrears.
5 – Theft By Tenants
Finally, it happens all too often that tenants vacate your property and take stuff that doesn’t belong to them. Having to replace expensive appliances or furniture will not only leave you out of pocket, but it can also delay you in finding a replacement tenant.
At Aspire Insurance Solutions, we have the experience of dealing with landlords and protecting their financial interests. This has resulted in many long-term relationships with our clients, as we offer a service that is reliable and effective.
Why Dealing With Aspire Insurance Is Your Best Option
Expert Advice With 24/7 Support
With a dedicated team to support home, content, and landlord insurance, we have customised our processes in a way that takes the majority of the hassle out your hands. We fully assess your current situation and policy and then identify ways to provide you with the best possible policy cover.
And if you find yourself in the unfortunate situation of having to file a claim, we will assist you through our 24/7 support service. This can significantly reduce the amount of time you spend on the phone and filing paperwork, allowing you to deal with the actual problem.
Every single one of our clients receives the same level of service, which always results in a solution that is tailored to individual needs. We are only satisfied when we have provided you with product options that reduce your risks to a minimum while avoiding some of the most common insurance gaps highlighted above.
Annual Cover And Premium Review
Competition in the landlord insurance industry is very strong, and every year, new and innovative products become available. This can make your policy renewal quite difficult as you need to make careful comparisons between individual policy offerings.
By partnering with Aspire Insurance, you can take all the hassle out of that process, as we do a full policy and premium review on every policy anniversary. We factor in changes in valuations and make sure you get the most competitive quotes available.
This can save you many hours of hassle and stress, making it a completely hands-off approach.
Face To Face Advice
Buying insurance policies online has become a lot easier. However, unless you have gained expertise in fully understanding insurance policy wording, you could be taking unnecessary chances.
At Aspire Insurance, we deal with all of our clients directly and over the phone to make sure that there is no misunderstanding and that the policy you buy takes all your personal circumstances into account.
Contact Us Today
If you would like to receive advice and a no-obligation quote for your residential or commercial investment property, then talk to one of our team members today on 1300 886 781.
You will experience our full commitment to quality service that puts your needs at the centre of everything we do, ultimately giving you the peace of mind that your investments are protected.