JohnHopkins

The Importance of Landlords Insurance

by Lorena D'Amico, Senior Property Portfolio Manager

Last month, we launched our Property Management division at the John Hopkins Group. Since then, we have actively been bringing on more and more clients every day to this new and exciting area of our business.

We provide our clients with many services when it comes to managing their property, one of which is general advice on things such as ensuring our clients have the correct insurances in place when they are leasing their property.

Landlords Insurance

For this article, I will outline the importance of having Landlords Insurance.

Many landlords believe if they have Building Insurance, this covers them for everything they are liable for; however this is often not the case. Some Building Insurance policies don’t cover items such as flooring or window furnishings, so if these are damaged, there is nothing there to protect you. These items don’t come under the tenants Contents Insurance either, as these types of items are not owned by the tenant, and therefore aren’t covered.

Landlords Insurance, on the other hand, often covers the above.

Being caught out in the rain

Recently in Melbourne, we have experienced unprecedented heavy rains, and many landlords have been caught out during this time when their properties were flooded. Thousands of landlords attempted to make insurance claims for the damage caused to items in their investment properties such as carpets and panelling, only to discover they weren’t covered by their Building Insurance.

Other advantages to Landlords Insurance

Another advantage to having Landlords Insurance is covering yourself for ‘intentional’ damage caused by a tenant. Whilst most tenants generally take good care of the property they are leasing, those who don't may intentionally cause extensive damage, and intentional damage is not generally covered by a standard Home & Contents Insurance, nor is it covered by the Body Corporate Policy either.

One of the most important aspects to having Landlords Insurance is that it covers you if the tenant fails to pay rent. You may not be receiving rent for various reasons, including the property being un-tenantable, tenants absconding, default of rent, no vacant possession, death of a sole tenant or malicious damage, amongst other reasons.

Exclusive Offer for John Hopkins Clients

Through our relationship with Property Insurance Plus, we are pleased to present an exclusive offer only available to John Hopkins clients.

The offer allows you to purchase 14 months cover for the price of 12 months premium, for Building Insurance and/or Landlords Insurance.

As I’ve outlined above, ensuring you have the correct insurance in place will create security for your investment property, save you money and protect your asset. If you already have an existing policy, we can review this to ensure you are appropriately covered.

In addition to receiving two months free insurance for either Building or Landlords Insurance, you will also receive a further 10% discount if you take out two or more policies with Property Insurance Plus.

How much does it cost?

Landlords Insurance with Property Insurance Plus, which is a comprehensive policy that includes cover for loss of rent and accidental damage, is only $239 per year. It’s important to note this fee is tax deductible for all investment properties.

Your investment property is an important asset to you and your portfolio, so for peace of mind and the low of cost of doing so, no property investor should be without these important policies.

Everyone’s policies are different, and offer varying ranges of cover and services. It’s important to review your cover regularly, as you may be able to save money or receive better cover elsewhere.

This exclusive offer is only available through the John Hopkins Group, so if you would like more details, or more information on the products and service we provide, please feel free to call our office and speak to Property Portfolio Manager Lorena D'Amico who will be able to answer any questions you may have.