Mount Isa rental property insurance
If you’re a Mount Isa landlord, then it’s important to insure your rental property for peace of mind. Unexpected events can happen even with the best tenants, and any rental insurance premiums you pay are tax deductible anyway, unlike your owner-occupier insurance.
What is landlord insurance?
Landlord insurance is the common name for rental property insurance. It protects you against potential tenant-related risks such as:
- loss of rental income (for example, a tenant breaking their lease early).
- property loss, damage caused by tenants, their pets or their guests.
- property loss or damage caused by theft or natural disasters, like owner-occupier home or contents insurance policies do.
Different insurance policy terms, conditions and coverage amounts are available to suit different needs. Let’s look at the types of landlord insurance cover in more detail.
Loss of rental income
Loss of rental income can occur for a range of reasons, including:
- unpaid tenant rent
- a tenant leaving your property in a temporarily uninhabitable condition when they vacate the premises.
Although you will have a rental bond to call upon in these circumstances, it may not be enough to cover your losses.
In addition, you can get landlord insurance cover for your legal expenses if you ever need to evict a tenant or even the cost to change your rental property’s locks after a problematic tenant has been evicted.
Hopefully you’ll never experience any of those scenarios, but if you have the appropriate landlord insurance cover, then you won’t be out of pocket.
Accidental or malicious damage caused to your property by tenants, their pets or their guests
This can include cover for home contents such as:
- household goods and electrical appliances
- furniture and light fittings
- curtains and blinds
- floating floorboards
- glass breakage
- oil leaks
- electric motor burnouts
- pools and spas.
This coverage is similar to cover you would get as part of home and contents insurance for your owner-occupier property. Once again, even though you may have a rental bond to call upon if your tenants cause damage to your property, the amount may not be enough to cover your costs, especially if the damage is anything more than minor.
Loss or damage cause to your property by theft or natural disasters
These events can include loss or damage caused by theft, storms, floods and fire. This type of cover in your landlord insurance is much like the cover you should get for your owner-occupier home as part of your home and contents insurance policy.
How much does landlord insurance cost?
The premium cost depends on factors such as the extent of cover that you have, as well as whether you manage your property yourself or use the services of a professional property manager. The more extensive your cover, the higher the premium and vice versa.
You can generally get an appropriate amount of Mt Isa rental property insurance cover for less than $1.50 a day.
Other landlord insurance FAQs
When should you take out landlord insurance?
You should take out an appropriate insurance policy before your tenants move in.
Does landlord insurance cover tenant’s contents?
No, it only covers your contents as the landlord. If tenants want to insure their own belongings, there are renter’s insurance policies available.
If you’re thinking about buying, selling, renting or leasing any Mt Isa property, or you need your property professionally managed, then contact our team today for an obligation-free chat!
We’d be happy to provide you with advice and to answer any property questions you have.