The Importance of Landlord’s Insurance

March 2019 | Real Estate

Landlord’s Insurance helps to provide you with peace of mind that your investment property will be covered should the unexpected happen. You can cover your leased or rented property including flats, units, apartments and houses. We recommend that all residential investment property owners should consider putting a ‘safety net’ policy in place to protect their investment. As a general rule, Landlord’s Insurance premiums are usually tax deductible.

If all goes well, the value of Landlord’s Insurance may not be fully appreciated, but when things go in the opposite direction and “turn sour”, having a Landlord’s Insurance Policy in place turns out to be a very wise decision.

The majority of tenants appreciate and respect the property they rent. However, it is important to have a strategy in place for unexpected damage to the property or when the loss of rental income occurs.

The main purpose of Landlord’s Insurance is to cover rent default and intentional damage to the property caused by tenants, visitors or pets. Some insurers will allow you to cover for additional optional events*, such as:-

  • Rent default and associated legal costs.
  • Theft or attempted theft, by a tenant, their guest or someone else.
  • Vandalism, or a malicious or intentional act, by a tenant, their guest or someone else.
  • Burn out of electric motors – fusion.
  • Storms, Water and/or oil leaks.
  • Lightning, Explosion, Fires.
  • Broken glass – buildings and/or contents.
  • Animal damage.

*Subject to the insurer’s various conditions, Claim Limits and Excesses per event.

Landlord’s Insurance can help the owner in situations where a tenant leaves the property during the term of the lease without telling the Landlord or managing agent.

Due to non-payment of rent the managing agent and/or the Landlord may need to attend the Court so that the Owner can obtain vacant possession of the property. This process can be quite long, sometimes up to 8 weeks. During this time no rent is paid by the tenant.

Too often the evicted tenant leaves a lot of damage to the property that needs to be fixed and rubbish that needs to be removed. Another week or two may be required to enable the property to be re-let.

During this time, the Landlord obtains no rent and may have large expenses. Some of these extra costs can be reduced if you have Landlord’s Insurance.

It’s important to investigate the details, the optional extra covers available from the different insurers in the market and the resultant cost of the premiums before you buy a Landlord’s Insurance policy.

AustAsia Real Estate does not sell this type of insurance however it is readily available from most insurance companies.

Please contact the AustAsia Real Estate team on (08) 9227 6300 or email us on if you would like some more information on this or any other real estate matter.

Important information and disclaimer

This publication has been prepared by AustAsia Group including AustAsia Real Estate Pty Ltd (REBA Licence No. RA1736) and AustAsia Accounting Services Pty Ltd (Registered Tax Agent No 7587 3005).

Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information.

Information in this publication is accurate as at the date of writing, 22 March 2019. Some of the information may have been provided to us by third parties. Whilst it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of AustAsia Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility, for any errors or omissions in this document.

Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.

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