Why Landlords Should Not Try To Save Money On Property Insurance!

Being a land­lord can be an extremely prof­it­able busi­ness but without the right plan­ning it can also become very costly.

car crash into kings langley NSW house

Car crash into kings langley house

TWO people had to be res­cued from a car after it smashed into house in Sydney’s west­ern sub­urbs Wed­nes­day afternoon.

As a land­lord everything is fine fin­an­cially whilst you have ten­ants in a prop­erty but if you have to endure a period with a vacant prop­erty, the lost rent can stack up extremely quickly. Another pit­fall of being a land­lord is hav­ing ten­ants who won’t look after a prop­erty as they should do or who will cause dam­age to a prop­erty whilst in there.

Acci­dental Damage

Add to this the risk of acci­dental dam­age too and being a land­lord can quickly become less of an attract­ive pro­spect.
Land­lord prop­erty insur­ance cov­ers dam­age caused by any sort of weath­er­ing such as wind and hail but it also and more import­antly cov­ers the prop­erty in case of a fire.

A land­lord who decides to take a risk and not take out land­lord insur­ance to save a bit of money will find that if a fire does occur in the prop­erty or E.G. a ran­dom car going through a house in kings Langley NSW , they will not only be left with a part or fully dam­aged prop­erty but they will also have large repair bills and a lack of income through hav­ing no ten­ants in the property.

If dam­age does occur to a prop­erty and the prop­erty is unable to house people until it is repaired then usu­ally the insur­ance would cover loss of rent dur­ing that period. Through not both­er­ing with land­lord insur­ance the loss a land­lord could face would be far greater than the small sav­ing they made by not tak­ing out insurance.

Fully Fur­nished Properties

A lot of land­lords also rent their prop­er­ties out with either part or full fur­nish­ings. This again can present prob­lems for a land­lord if they decide not to bother with land­lord insur­ance. Any dam­age done to the fur­nish­ings or the appli­ances will not be covered and the land­lord will have to pay out for replace­ments themselves.

Prop­erty Liab­il­ity Insurance

One of the most import­ant reas­ons a land­lord should have prop­erty insur­ance is for liab­il­ity pur­poses. Should a ten­ant have an acci­dent due to a fault with the prop­erty, land­lord insur­ance can cover most com­pens­a­tion claims they make. Without insur­ance the land­lord will have to pay out for the claim them­selves and pos­sibly face crim­inal charges too.

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia