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What is Landlord Insurance?

Landlord insurance is a specialised policy designed to protect property owners from common rental-related risks. This coverage typically includes protection for the building, contents, and loss of rental income due to tenant-related incidents. Whether you own a house, apartment, or unit, landlord insurance helps cover costs linked to tenant defaults, damage, or unforeseen events like storms or fires.

What Does Landlord Insurance Cover?

A landlord insurance policy often includes:

Tenant-related cover:

• Damage or theft caused by tenants or their guests
• Loss of rental income due to tenant default
• Legal fees if action needs to be taken against a tenant

Building cover:

• Protection for structural elements (walls, floors, fixtures, plumbing, and electrical systems)
• Coverage for events such as fire, storms, floods, vandalism, and accidental impact damage

Contents cover (for furnished properties):

• Protection for appliances, carpets, curtains, and light fittings in case of fire, theft, storm damage, or other insured events

Some policies allow add-ons like accidental damage cover, appliance breakdown protection, and coverage for civil disturbances.

What’s Not Covered?

While landlord insurance is valuable, it doesn’t cover everything. Most policies exclude:

• Routine maintenance and general wear and tear
• Structural defects
• Tenants’ personal belongings
• Everyday property upkeep expenses (e.g., lawn mowing or minor plumbing repairs)
  

Is Landlord Insurance Worth It?

Although not legally required, landlord insurance is a smart choice for property owners. Even responsible tenants can run into financial difficulties or unintentionally cause damage. Without insurance, landlords may have to cover costly repairs, legal disputes, or extended periods without rental income.

Natural disasters, accidents, or even an unexpected job loss for a tenant can impact your income. Insurance acts as a safety net, ensuring that your investment remains financially secure.

Finding the Right Landlord Insurance

To choose the best policy, consider:

1. Your specific needs: Do you need more protection for tenant-related risks, or is building and contents coverage a priority?
2. Comparing providers: Use online tools to compare policies and read customer reviews to assess reliability and claims handling.
3. Checking policy details: Review the Product Disclosure Statement (PDS) carefully to understand what’s included and excluded.
4. Understanding claims processes: Research how claims are handled to ensure you won’t face delays or difficulties in the event of an issue.

Is Landlord Insurance Tax Deductible?

Yes! The Australian Taxation Office (ATO) allows property owners to claim landlord insurance premiums as a tax deduction, provided the property is being rented or is genuinely available for rent. Keeping clear records of your insurance expenses will make tax time easier.

Protect Your Investment with Polished Property Co

At Polished Property Co, we understand the importance of securing your rental property. Our team can guide you through essential property management strategies, helping you find reliable tenants and keep your investment protected. Contact us today to learn more about how we can support you in managing your rental property successfully.

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Created: 18/02/2025

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