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Landlords Should Ensure They Have The Right Type Of Insurance To Cover Their Property

Post by Sharat on October 28, 2016 · Under insurance · Comments Off on Landlords Should Ensure They Have The Right Type Of Insurance To Cover Their Property 

Insurers are warning landlords in Victoria to make sure that they thoroughly screen would be tenants after it emerged that at least one home in Victoria is vandalised every day. In the last financial year, there were a total of 2,575 landlord insurance claims which represents a 10 per cent increase compared to the previous financial year.

Tenant misbehaviour is a serious source of damage

Storms were the most damaging, accounting for 611 claims, however a large number of claims were attributed to tenant behaviour, ranging from rental default, malicious damage and leaving without notice. Insurers say the data illustrates the fact that landlords need to ensure their investments are protected by having the correct type of insurance policy and understand what the policy covers.

You should also cover for natural disasters

Aside from damage caused by tenants, landlords should be aware that they are at risk of natural disasters ranging from storms, fires, and floods. Homeowners without the right type of insurance could see their investment seriously impacted. Although landlord insurance does protect against bad behaviour by tenant, property owners may need to think about other levels of insurance such as home and contents, if the property is being leased out. Here are a few tips for landlords to think about.

  • Carefully screen would be tenants and this includes making sure you check references.
  • If you find the tenant is paying their rent late, you should take immediate action because missed payments are just as expensive as tenants who cause damage to your property.
  • Make sure you have the right amount of landlord insurance so that any malicious damage or loss of rental income is covered.
  • Make sure you regularly inspect your property and record its condition.
  • Think about hiring a trusted real estate firm to manage your rental property.

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