Do I need landlord insurance?

Landlord insurance can help cover you for a variety of issues, should they arise. You should weigh up the cost of insurance with the potential toll of a long-term financial burden. Of course, you should assess your insurance options in-depth and compare the type of coverage you get via different providers and packages.

With the right kind of insurance plan, as a landlord you can be protected against:

• Accidental loss or damage caused by yourself
• Loss of rent due to tenants defaulting on their payments
• Damage to your property caused by tenants (and/or their guests), whether malicious, intentional accidental
• Legal fees (should you need to take legal action against a tenant)

It is important to note that, should own a property within a strata scheme, that public and shared areas within the complex or building may already fall under the coverage of body corporate insurance. In some cases, your strata payments may even cover the unit or apartment you own. Therefore, you should always check with your body corporate before you take our rent insurance (should this be applicable to you).

You can claim your insurance at tax time and it will operate as a tax deduction. While you won’t be able to claim the entire expense of the insurance, it will work to reduce your taxes.

Need more advice and assistance regarding professional property management? Contact us today.