When it comes to protecting your investment property, it is wise to take out adequate insurance for full protection in the event that your investment is compromised. Landlords insurance is a tax deductible expense. It provides comprehensive cover against deliberate and intentional acts by tenants, vandalism and loss of rent. Each insurance company’s cover is different, so you need to read the policy wording and ask questions. Don’t scrimp on the cover. Sometimes cover can be a little bit more expensive, but you may be covered for longer periods (check for the period provided for in the policy wording booklet) Remember, you pay for what you get!

Benefits to look for in a landlords policy are:

A.    Loss of rent caused by:

• Premises being left un-tenantable due to malicious damage to the building and contents (check on the period provided for)
• Rent reimbursed for absconding tenants (check on the period provided for)
• Defaulting payments resulting in eviction of your tenant by a Court Order (check on the period provided for)
• Prevention of Access (check on the period provided for)
• Failure to give vacant possession (check on the period provided for)
• Death of a tenant under a sole tenancy (check on the period provided for)
• Tenant Hardship (when a Court awards your tenant a release from their lease obligation due to hardship) (check on the period provided for)
• Legal expenses – (check how much the allowance is for)
• Representation costs (check how much the allowance is for)
• Replacement of Locks (check how much the allowance is for)
• N.B. Weekly rent is subject to a maximum amount (check the amount allowed for) unless previously agreed.

B.     Loss or Damage to your CONTENTS

A good Landlord Insurance Policy provides cover for general household contents including curtains, carpets, blinds, light fittings and even furniture left for the tenant's use. These items are covered against loss resulting from:

• Malicious damage by all persons, including tenants
• Deliberate damage by all persons, including tenants
• Accidental damage by all persons, including tenants
• Theft, riot and civil commotion
• Fire, explosions, lightning and earthquakes
• Breakage of fixed glass
• Storm and rainwater
• Water damage
• Impact damage & leakage of oil
• Fusion

B.   Loss or Damage to your BUILDING

Check your Landlords Insurance Policy to ensure that the insurance company replaces your damaged items under the Building or Contents Section of the Policy to a maximum combined amount that you are happy with, otherwise you can agree to increase the amount (which is well worth the extra money spent). You need to cover your property against loss or damage resulting from :

• Malicious damage to the structure of the building by tenants, their family and/or invitees
• Deliberate damage to the structure of the building by tenants, their family and/or invitees
• Accidental Damage to the structure of the building by tenants, their family and/or invitees
• Theft by tenants, their family and/or invitees