10 Landlord Insurance Myths – Debunked!
Landlord insurance is complicated.
It is an industry bound by complex laws and regulations and offers cover only in very specific circumstances that can be quickly undone by technicalities. At EBM RentCover, we do things a little differently and are debunking many typical landlord insurance myths.
This article was written by EBM RentCover and was originally published here.
MYTH 1 – My claim won’t be paid
The big bad insurance company is a popular villain. However, at EBM RentCover, our reputation and future success are built upon a foundation of integrity and honesty (and ultimately honouring appropriate claims submitted by clients). In fact, in the past 12 months, we have paid out more than $20 million in claims.
MYTH 2 – It’s too expensive
RentCover Ultra premiums start at just $265 per annum. That is extra protection for your property, for the approximate cost of a large coffee a day. If you still think it is too costly, you may wish to look into how much more expensive it is to restore a home in the aftermath of a natural disaster.
MYTH 3 – Landlord insurance doesn’t cover accidental damage by the tenant
Some policies exclude accidental damage as a whole or offer minimal cover and high excesses. RentCover Ultra provides cover for tenant damage to contents and building, including malicious and accidental up to $65,000 (with an excess of $400 per event).
MYTH 4 – Pets living in properties aren’t covered
The high risk of damage by animals is a key reason landlords say ‘no’ to pets. However, that risk can be mitigated with EBM RentCover policies, offering protection for damage caused by domestic pets living on the premises, including those not named on the lease.
MYTH 5 – The cheapest policy is best
There are many reasons premiums vary from insurer to insurer and policy to policy, including the amount of cover, the sum insured, excess and limits. When looking for an adequate insurance policy, it is suggested a decision is based on value and need, not price.
MYTH 6 – It’s unnecessary and I’m unlikely to make a claim
If you are fortunate, you may never make a claim against your insurance. However, accidents and unexpected disasters can, and often do, occur. When you are involved in the unpredictable, it is important to have protection for your investment.
MYTH 7 – Insurers won’t cover the cost of meth contamination clean-ups
Insurance coverage for the cost of meth contamination clean-up depends on the individual insurer and the specific policies they offer. RentCover Ultra provides up to $65,000 to cover the cost of cleaning a drug-contaminated property if the damage is caused by tenants during the period of insurance, along with other costs incurred, such as loss of rent while the property is repaired.
MYTH 8 – Tenants must be on a fixed-term lease in order to claim
Many policies require a fixed-term lease to be in place at the time of a loss, however, RentCover Ultra and RentCover Platinum continue to pay loss of rent claims on periodic leases.
MYTH 9 – I’m covered for everything
Policies vary in the cover offered. It is important to assess your property and personal circumstances to determine the risks and whether your insurance aligns with your needs. For example, RentCover Ultra provides landlord contents insurance, whereas RentCover Platinum combines landlord, contents and building.
MYTH 10 – The body corporate already insures my property
The body corporate may be required to insure the building and common areas in a strata-titled property, however, the moment someone steps inside your home, you may be responsible for negating a number of risks. Risks include liability should someone injure themselves inside your premises and damage to the contents.
Now you have a better understanding of landlord insurance, check out the EBM RentCover range of products to find suitable protection for your property.
*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are there, contact 1800 961 017 if you have any questions.