You need to be aware that Landlord Insurance policies are not created equal.
It is absolutely essential that you read your policy thoroughly before purchasing any.
This is one area you simply cannot afford to take the cheaper option.
Having been in property management for many years you see the good and the bad.
Unfortunately, I have seen far too many of my clients end up in terrible situations.
All because their insurance didn’t cover the required issues when they arose..
Disclaimer: We are not licensed insurance brokers so the following information is only based on what we have witnessed over the years through our work.
Please speak to a licensed broker for investment advice.
WARNING: Don’t try to save money on your insurance coverage. The potential financial penalities of the wrong coverage are far too great.
Coverage quality differs greatly between policies and understanding exactly what you’re getting is an absolute must.
PLEASE, PLEASE, PLEASE:
- Don’t select Landlord Insurance based on price
- Read the fine print of what the policy covers so you understand exactly what you can and cannot claim!
- Recognize body corp insurance only covers up to front door
Earlier in the year one of our clients saw their house burn down, thankfully they listened to our initial recommendations.
Luckily they started out by speaking to the right people and were completely covered.
But there are still many, many instances where that isn’t the case.
This example shows the very real necessity of landlord insurance but also highlights going through a potential policy with a fine-toothed comb.
Particular phrasing like ‘malicious damage” or “body corporate insurance” are tools insurance companies use to argue out of a potential claim or by confusing purchasers who don’t actually understand what they are reading.
Do Your Research on What Your Landlord Insurance Covers
So please don’t take this as saying you shouldn’t get landlord insurance as I believe it is a must but simply that you require to be really cautious with your choice of provider and coverage.
With the right provider and policy you can rest easy that your interests are protected, but trust me in saying this is not the time to worry about getting the best price, as the risk is to great.
We hope this information is helpful to you and saves you a massive pain in the wallet in the future.
