Insurance

Landlord insurance is specifically designed to protect those who own investment properties from the risks that come with renting it out. It generally covers events that cause a loss of rental income, theft or damage to your property.

There are generally three components of landlord insurance:

• The part that covers loss of rental income

• ‘Building insurance’ which covers damage to the property’s structure

• ‘Contents insurance’ for protection against damage to what’s inside the property (e.g. carpet, appliances)

• ‘Public liability insurance’ or legal liability cover, which insures the landlord for death or bodily injury to other people or damage to other people’s property. Landlord insurance can apply to all sorts of investment properties, whether it’s a house, unit, apartment or townhouse.

Additionally, Landlord insurance costs can be tax deductible

What’s the difference between landlord insurance and building insurance?

Landlord insurance covers you for unforeseen circumstances relating to your tenants, such as if they damage or destroy your property, or in some cases where they leave without making their rental payment.

Building insurance (often called home insurance) on the other hand covers the cost of building repairs or replacement - for example, if your house burns down in a fire. You’ll need to organise building insurance for your property, unless you buy a unit, in which case the building insurance may be paid from your strata levies.

While you don’t have to take out this type of insurance, it’s an important consideration, as it will cover you for potential financial losses which could be costly if you don’t have insurance in place. These losses may result from a range of scenarios, from damage to the building caused by your tenants, to a loss of rental income should tenants leave without paying.

Many LJ Hooker Solutions Gold Coast clients choose to use EBM Insurance or Terri Sheer Insurance. Our longstanding relationship means they understand our landlords better than any other company. They work closely with us to maximise our claims and we know that you will be in the best of hands with them.