Do I Really Need Landlord Insurance?

Protecting your investment property, income, and peace of mind

Owning an investment property comes with incredible opportunities, but also with its fair share of risks. While standard home insurance protects the physical building, it does not cover the unique circumstances that come with being a rental provider. That is where landlord insurance steps in.

What Does Landlord Insurance Cover?

Landlord insurance is designed specifically for rental properties. Policies generally provide protection for:

• Loss of rental income if your property becomes uninhabitable after an insured event, or if renters default on rent.

• Property damage caused by renters, pets, or unexpected events such as storms, fire, or vandalism.

• Liability cover if someone is injured on the property and you are found legally responsible.

Why Isn’t Standard Home Insurance Enough?

A typical home insurance policy covers the building and contents, but it assumes the owner is living in the home. Investment properties carry different risks, and without landlord insurance, you could be left covering rental losses or expensive repairs out of pocket.

Is Landlord Insurance Worth It?

Landlord insurance acts as a safeguard for your rental income and your investment’s value. Even one unexpected event, such as a long vacancy, unpaid rent, or major damage, can outweigh the cost of the policy. For many rental providers, it brings peace of mind knowing their financial security is not left to chance.

Tailoring Cover to Your Property

Not all landlord insurance policies are the same. Some provide basic cover, while others include extras such as legal expenses or flood cover. It is important to compare policies and choose one that reflects the type of property you own and how it is rented.

Our Take

If you are renting out a property, landlord insurance is not just a nice-to-have. It is a practical way to protect both your asset and your rental income. It ensures that, no matter what happens, you are better positioned to handle the unexpected without major financial stress.

Andrew Wright Licensed Estate Agent andrew@thecoast.com.au 0481 310 010