Landlord Warning: What You Could Lose Without Insurance

Owning an investment property in South Australia can be a rewarding venture, but it also comes with its fair share of risks. That’s where landlord insurance steps in - offering peace of mind and protection when things don’t go to plan.

What is Landlord Insurance?

Landlord insurance is a specialised type of cover designed to protect landlords who lease their properties to tenants. While standard building insurance covers structural damage, landlord insurance goes further, safeguarding you from risks specific to rental properties.

What Does it Cover?

Landlord insurance policies vary, but a comprehensive policy should ideally include:

✔️ Loss of rental income - if the property becomes uninhabitable due to events like fire or severe weather.

✔️ Public liability cover - to protect you against legal claims if someone is injured on your rental property.

✔️ Malicious and accidental damage - caused by tenants.

✔️ Pet damage - to your property.

✔️ Theft of contents - provided for tenant use, such as carpets, blinds, underlays, and light fittings.

✔️ Legal expenses - related to tenancy disputes or property damage claims.

South Australian landlords are bound by state legislation under the Residential Tenancies Act 1995, which outlines the rights and responsibilities of landlords and tenants. While this legislation helps maintain fairness, it doesn’t protect landlords financially when things go wrong.

For example, if a tenant breaks their lease early or fails to pay rent, you could face weeks of lost income. If a tenant causes extensive damage beyond the bond amount, you might be left with a hefty repair bill. Landlord insurance can help mitigate these risks and reduce your financial exposure.

A Smart Investment

Whether you own one rental property or a growing portfolio, landlord insurance is a small cost for substantial protection. Policies vary, so it’s important to choose cover that suits your property type, tenant demographic, and rental arrangements. Your property manager can help you review your options and ensure your investment is properly protected.