Why a standard home policy may not be enough
A home and contents policy is usually written for a home you live in. Once the property is leased, check whether your policy still applies and what it covers. Landlord insurance is designed for rented properties and can cover risks a standard policy does not, such as loss of rent.
Every policy is different. This guide is a list of questions to ask, not advice about which policy is right for you. Read the product disclosure statement and speak to your insurer or broker.
- Tell your insurer the property is now rented.
- Read the product disclosure statement, not only the summary.
- Ask a broker or insurer about anything you are unsure of.
What to look for
Common areas of cover include the building, landlord’s contents such as carpets, curtains and appliances, accidental and malicious damage by tenants, loss of rent and legal liability. Some policies include these as standard; others offer them as options.
Check how each is defined, what the limits are and which excesses apply. A low premium can come with high excesses or narrow definitions.
- Building cover, or contents cover only if the property is in a strata building.
- Accidental and malicious damage by tenants.
- Loss of rent, including how many weeks are covered and when.
- Public liability cover and its limit.
Apartments and strata
For an apartment, the owners corporation insures the building and common property. You will usually still need cover for your own contents, such as carpets, curtains and appliances, as well as for loss of rent and liability inside the apartment.
Ask your strata manager for a copy of the building’s insurance certificate so you can see what it includes.
- Get the building insurance certificate from the strata manager.
- Check where the building’s cover ends and yours begins.
- Avoid paying for building cover you do not need.
Making a claim
Insurers will normally expect you to show the condition of the property before the loss and what changed. Ingoing condition reports, routine inspection reports, photos, invoices and rent records are the evidence that supports a claim.
Insurers usually also expect the property to have been properly managed, with tenants screened and inspections carried out. Keep those records together so they are ready if they are needed.
- Keep condition and inspection reports with dated photos.
- Keep invoices for repairs and replacements.
- Tell your insurer about a possible claim as soon as possible.
Let’s talk about your property.
Discuss your plans and the next steps with our team.
