Often Landlords have building Insurance but sometimes do not have Landlords Insurance or Contents Insurance, so what’s the difference and what do you need?
Building Insurance
Covers your residential building for loss or damage caused by insured events, such as fire, flood, storm, theft, power surge burnout, this type of Insurance does not cover contents.
Landlords Contents Insurance
We often assume that contents Insurance is only for the tenants belongings however more often than not building insurance does not cover what’s inside the property.
Landlords contents Insurance may cover items such as carpets, blinds, curtains, light fittings and some removable items.
** please note if you own a strata titled property with a Strata Company the building insurance should be paid by the strata company however this policy may not include cover for what is inside your unit , it is worthwhile checking this with the Strata Company **
Landlords Insurance
This policy is specifically designed to protect those who own investment properties.
A Landlord insurance policy may cover all or some of the following – theft, malicious damage, rent default, legal expenses if the tenants are taken to court & liability claims
Whilst there is no legal requirement for landlords to have landlord insurance, we do see it as a worthwhile investment for your own piece of mind.
As a landlord, there is also a very real risk of a tenant defaulting on their rental payments. Changes to life circumstances or financial difficulty during economic downturns can sometimes mean rent is last bill to be paid..
Even reliable tenants make mistakes!
Here a couple of links explaining what is and isn’t covered under the different policies;
or you may find your Building Insurer can easily add Landlords Insurance and Landlords Contents Insurance.