What is Landlord Insurance?
Negative gearing; equity; rental income – you’ve gone through all the numbers and done the math when it comes to renting out your home. Before handing over the keys to your property manager, there is one part of the equation you’ll need to include in your calculation.
Landlord Insurance has been designed to cover you for risks generally faced by landlords when renting out their property. It is an enhanced form of home building (and/or contents) insurance, which includes cover for the events a traditional home insurance policy would be expected to cover, such as storm and fire, but has additional features which are applicable to you as a landlord (such as cover for rent default; malicious damage by tenant, and loss of rental income).
Why do Landlords need insurance?
Investment property owners have a lot on their shoulders. From the moment the lease agreement is signed, the responsibilities of fixing the leaky tap, the loose door hinge and the faulty power point all sit with the landlord. Having tenants in a home can bring additional complexities, such as liability on an owner's part, or tenants causing damage to the rental house. If a landlord's negligence causes a tenant or their visitors to suffer an injury, or if tenants leave the property in a shocking condition, the headache of legal fees or repair costs will be a big strain on a property owner's pocket. Landlord insurance can help provide comfort of having cover in place for these types of mishaps.
Are you a Real Estate Agent?
If you're a Real Estate Agent who looks after rental properties, you can arrange Landlord Insurance through Aon on behalf of your clients. Click here to access real estate agents resources.
Why choose Aon for Landlord Insurance?
Aon is committed to making life easier for you by arranging insurance that’s easy to understand, buy and manage, so you can get quotes and take out a policy online. Or if you do need help, our team of friendly experienced brokers are a phone call away to help you understand what insurances you may or may not need, but more importantly, why. Helping give you confidence that you’re making a better decision for you and your business.
Aon is a proud partner of the Real Estate Institute of Australia (REIA), the Real Estate Institute of Queensland (REIQ) and the Real Estate Institute of Western Australia (REIWA).
This will vary significantly between different states. It will depend on the address of the property and a number of other factors, such as the sum insured of the property. We recommend going through the quote process to get an indication of the price.
Is a landlord responsible for damaged property?
As a landlord, if there is damage to your investment home, the cost of repair sits with you. In addition to damage to the house itself, if a tenant alleged that your negligence as a landlord caused damage to their property, then it is possible that you would be held liable for these costs as well.
I rent out an apartment or villa – do I still need Landlord Insurance?
If you rent out an apartment or villa, you might have some level of cover under your Strata Insurance. You should speak to your strata insurance provider to understand which parts of the property the strata insurance covers. Depending on the coverage under your Strata Insurance, you may still need a Landlord Insurance policy to cover the fixtures and fittings, public liability, as well as risks such as rental default or loss of rent should an insurable event take place within the 4 walls of your property.
I’m renting out a furnished property, do I need extra insurance?
If you’re renting out a furnished property, you may wish to include Landlord Contents Insurance in your coverage, where you nominate the total value of your furnishings that you wish to insure.
I’ve leased my property out privately, can I still get Landlord Insurance?
You’re still eligible to take out Landlord Insurance even if you’ve rented out your property privately. However, to be eligible to be covered for rent default and loss of rental income, you need to have a written rental agreement in place.
2Due to a current embargo, we are unable to offer this benefit until further notice.