“Securing Your Investment: The Top 3 Landlord Insurance Claims”

Posted 15th November 2023 by Pillar Property

In Australia, landlord insurance is a crucial safety net for property investors, protecting them from various financial risks associated with renting out properties. Based on industry reports and common trends within the rental market, the top three claims made on landlord insurance typically include:

1. Loss of Rental Income

This is perhaps the most common claim made by landlords. It covers situations where the tenants are unable to pay their rent, often due to financial hardship, loss of employment, or in more severe cases, absconding. It also covers loss of rent due to an insured event that makes the property uninhabitable, such as significant damage from natural disasters or fires. Considering the unpredictability of tenants’ circumstances and natural events, having coverage for loss of rental income is essential for landlords.

2. Tenant-related Damages

Claims for tenant-related damages are also high on the list. This includes intentional damage caused by tenants or their guests, as well as accidental damage. While normal wear and tear are expected over time, substantial damages can result in costly repairs. This type of insurance claim helps landlords manage the financial impact of repairing significant damages that go beyond normal wear and tear or the security deposit’s coverage.

3. Water Damage

Water damage, resulting from issues like burst pipes, flooding, or severe weather events, is another common reason for insurance claims. Such damage can affect the structure of the property and the tenants’ belongings. The extent of water damage can sometimes render a property uninhabitable until repairs are made, further leading to loss of rental income, on top of the repair costs.

These claims highlight the importance of having comprehensive landlord insurance that covers a broad spectrum of potential issues. While the specific coverage will vary between policies, ensuring protection against these common claims can provide significant peace of mind and financial stability for property owners. Always reading the policy details carefully and consulting with an insurance professional can help landlords choose the best coverage for their needs.

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