Landlord Insurance Guide
Landlord, or Rental Property Insurance is an insurance policy that covers both the property owner (Landlord) for their Rental Home and the risks associated with being a landlord.
As a homeowner your house is exposed to standard risks such as fire, floods, and natural disasters. As a landlord you are at risk to both these standard homeowner risks, as well as the risks associated with renting your property to tenants.
Landlords need insurance that will cover all the essential risks of home ownership as well as the additional risks of renting such as loss of rents, damage by tenants and meth contamination.
What Extra Cover does Landlord Insurance Provide?
1. Malicious Damage by Tenants
Malicious damage is where a tenant causes intentional damage to your property. As a landlord such damage may arise from a tenant punching a wall, vandalising the property or throwing a party that causes damage to the home.
Initio Malicious Damage Protection
Initio’s landlord insurance policy provides cover for intentional damage, vandalism and theft by tenants. We cover damage caused by a tenant, paying guest, or person who occupies the home – and any guest associated with these people.
The initio policy covers up to $25,000 per event for malicious damage claims. For deliberate fire or explosion damage by tenants, initio will cover over $25,000 and up to the homes full sum insured.
2. Loss of Rents
If you are a landlord and your property suffers a total loss which leaves the property uninhabitable (such as a fire), not only are you faced with the costs to rebuild, but also the lost rental income you would have received if the house did not suffer a loss.
A Landlord insurance policy will provide cover to rebuild the home, while also compensating you the lost rents if the property is no longer able to be tenanted.
Landlords are also at risk to other sources of lost rents from tenants. This includes loss of rents due to a tenant eviction and loss of rents due to a tenant inexplicably vacating the property. A comprehensive landlord insurance policy will also cover these additional sources of lost rents that landlords are at risk to.
Initio Loss of Rents Cover
Initio’s landlord insurance policy covers loss of rents for up to 52 weeks (or up to the sum insured) following a physical loss that means the home cannot be lived in – such as a major flood or earthquake. Initio offers a choice in sum insured of $20,000, $40,000 or $80,000.
The initio policy will also cover rents for up to six weeks where a tenant vacates your property without the required consent, or where they are evicted due to non-payment of rent.
Landlord’s might also suffer loss of rents where the tenant can legally stop paying rent under their tenancy agreement. Initio’s landlord insurance will cover rent for up to six weeks where there’s a prevention of access to the home, or where there’s a failure of utilities such as the power supply.
3. Methamphetamine Contamination
One of the largest risks to landlords is methamphetamine contamination to their home caused by a tenant. This can either be as a result of consumption (smoking) or manufacturing.
If you discover meth contamination at your property, the home can be considered unsafe to live in and will be required to be de-contaminated to an appropriate level. A landlord insurance policy provides cover for cleaning meth contamination caused by a tenant, which a standard own home insurance policy will not.
An extensive landlord insurance policy will not only cover the costs of cleaning, but also the lost rents while a property is being cleaned for meth contamination and can not be lived in.
Initio Methamphetamine Cover
Initio’s landlord insurance policy covers consumption and manufacturing by tenants up to $30,000. We cover both the costs of testing and cleaning where a positive meth test has been found. Initio’s standard landlord policy extends to cover the amount of any rent you lose if the home cannot be lived in due to contamination, up to the full 12 months limit of lost rent.