If you own a rental property, you’re vulnerable to the same risks of any homeowner, such as storms, floods and fire. You’re also vulnerable to damage that tenants can do to your contents. And if you can’t rent out your property while it’s being repaired or if your tenants break the lease or leave owing you rent, you could also lose valuable rental income.
So if you own an investment property, you should consider taking out landlord insurance to protect your investment and the income it provides. As well as long term leases, landlord insurance policies may also cover short term holiday rentals or holiday homes, such as approved Airbnb.
Why you should consider it.
This is an insurance policy designed specifically to help financially protect landlords for some of the common risks associated with renting their investment property. It provides protection for some of the tenant related risks that may not be covered by standard building insurance, including damage caused by your tenant’s visitors and friends.
What does it cover?
The cover you’ll receive depends on the policy that you take out, but your landlord insurance policy may include:
- Automatic cover for flood, fire or explosion
- Liability cover for injury or loss of life to a third party or their property
- Cover for to landlord’s contents – like carpets, curtains, washing machines and ovens
- Catastrophe cover
- The option to cover loss of rent
- Loss or damage caused by tenants or their visitors
- Electric motor burnout
- Tax audit cover (up to K7,500)
- Extra cover for demolition and debris removal.
What isn’t covered?
As with any insurance there are limits and exclusions that apply. There may also be a deductible, excess or limits on this type of cover so check with your Wereck insurance broker.