What Wikipedia Can’t Tell You About LandLord Insurance in NZ

Congratulations you have a Rental Property and this article is going to tell you why would you be better off by setting up a Landlord Insurance.

There is a big difference between a house insurance and a landlord insurance policies. The first one covers the building – the house itself and the second covers you as an investor

Though many of the aspects are covered in a house insurance – like the building, the deck and even the landscape (subject to the policy you have – some policies do not cover it). Landlord insurance covers homeowner’s  from potential losses arising from tenants and tenants activities, negligence and even loss of rental payments. For instance if the rental house you have just had a fire due to the use of a gas fryer and half of the house is damaged – the tenants are going to move out – right? As the result you are going to end up with an empty house and without rental income. The bank is yet going to demand mortgage payments even you do not have any money coming in – you are yet liable for all the financial liabilities. Your property under a house insurance is protected against any natural disaster or a fire or even from an accident but it does not cover you as the land lord from potential financial losses and this is where a landlord insurance policy can play a big part. So big that it would simply allow you to have a piece of mind and maintain the ownership on the rental property.

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Landlord insurance policy can pay for:

·         Non-payment of Rent:

If for any reason the tenant residing in your property stops paying the rent, the policy will cover the default amount. Any legal actions you take to recover your rent from the tenant will be covered by the policy.

·         Malicious Damage and Vandalism

If there is any damage caused to your property by the tenants intentionally then the policy will cover any repairing that needs to be done.

·         Coverage of Contents

If you have provided appliances such as a dish washer or a fridge  in your property to tenants to use then rest assured that they are also covered by the landlord insurance.

fire

Photo courtesy of ChazWags(CC No Derivatives)

·         Loss of Rent due to Fair Cause

If your tenants are not able to live in your rented property due to some kind of repairing being done (as in the example above), they’ll definitely not pay you any rent. But why worrying when the rent is also covered in your landlord insurance policy?

·         Coverage of Liability

If your tenants sue you for any physical injury or death due to the occurrence of an incident at your property then liability coverage of land lord insurance covers that aspect as well. If there are any legal costs involved, they’ll also be covered.

·         Coverage For Flood

Your land lord plan also covers any damage caused to your property due to flooding, storms or heavy rainfall. If you’re in an area which is exposed to such dangers then this feature of land lord plan will surely be of big benefits to you. Or simply think of old pipes in your house.

Please contact me or download the brochure I have attached for you- I hope this article as well as all the provided materials have helped you to realise the importance of LandLord insurance. I am happy to answer your calls on your terms and discuss your rental property insurance – when you have time and I do understand that you most likely work during the day – so we can set up time which would work for you.

 

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