Many landlords in Australia are putting themselves at risk by having an underinsured landlord home insurance. A lot of people are still unaware of what things are covered in their insurance policy and what are not which is why many people get shocked when they find they are underinsured. Similarly, many experts believe that if landlords go for underinsurance deliberately to reduce monthly premiums then they would actually have to pay more out of their pockets in case of any accidents.
Do Some Research
When going for a home insurance, it is important to know the market value as well as the rebuilding value because even though the price of the house may be low but the rebuilding cost in case of accidents may be high. While determining the rebuilding cost, you need to know the exact dimensions of your house. By determining the dimensions you can get an idea about your cost and you can also find out if that cost gets covered by your insurance policy. Some people don’t know that rebuilding a house involves a lot of hidden costs such as clearance cost, architects fees and other expenses which are not usually covered in the landlord insurance policy. So make sure you are getting covered for the cost of rebuilding of the house as well as these hidden costs.
Choose Insurance According To Your Needs
For investment property owners having an insurance policy which is specifically tailored to individual landlords is a great option to get the maximum out of your landlord insurance. Some of the risks traditionally covered by a landlord insurance include malicious damage, accidental damage, loss of rental income, theft etc. Now if you think that you will also need a public liability insurance to protect yourself from the tenants, then you can add this clause in your landlord home insurance agreement. But remember doing this will increase your monthly premiums. In addition to that, your monthly premiums will also be based on other factors such as location and property type. If you own more than one rental property, then you could ask your insurance agent to get a single insurance policy for all your properties through which you could save a lot of money.
Another important feature of landlord insurance is that it protects the landlord’s contents that are being used by the tenant such as furniture, television and other home appliances which are expensive to replace. In your insurance policy, you could also include an emergency insurance which helps the landlords to get rid of everyday problems such as electrical or plumbing problems. By doing these simple adjustments to your insurance policy you could save yourself as well as your tenants from a lot of hassle.
Landlord home insurance can make your life very easy if you are getting the right insurance but always make sure that you are not underinsured.