Would Your Landlord Protection Insurance Pay If You Needed To Claim?

Many Landlord Protection Insurance Policies are not comprehensive, and even worse, many landlords don’t realise this. The important question is, will you be paid if you need to claim?

What You Should Know:

1. Landlord Protection Policies are offered to property investors by pretty much everyone; motor associations, banks, insurance companies (obviously) and even grocery retailers. These policies are highly profitable to the insurer as many claimable events aren’t submitted simply because the amount is relatively minor and the premium excess per claim item negates the benefit.
2. Most LPI policies are not inclusive which provides the insurer grounds to deny the claim. Most policies cover intentional damage and malicious damage but few insurers include accidental damage. Check your policy includes intentional/malicious damage and accidental damage including loss of rent and a low excess fee.
3. Some LPI providers complicate the claims process by requiring a site assessment of the claim which adds a time and inconvenience element to the process. In addition, insurance providers from time to time change underwriters who alter policy covers.
4. Ensuring you have the best available LPI in your postcode at the right cost really requires your attention each year. Your LPI policy is your responsibility, not your managing agent who may have responsibility of paying your Insurance Renewal invoice each year. Over time, your policy premium, claim excess, items of insurance coverage and insurance value of inclusions will have been affected and require review.
5. All LPI policies are not the same. Landlords need to regularly satisfy themselves their chosen policy is at least covering intentional, malicious, accidental damage, loss of rent and a low excess fee. Ask your provider to supply you with a one page price check, policy benefits and insurance coverage.

CLICK HERE to contact Zeal Property Management to discuss your current property management solution. Or, to view an example Landlords Insurance Policy please visit www.honan.com.au.