Is landlord insurance worth having? What insurance do I need as a landlord in NZ?
Insurance is a just in case, hopefully you never have to make a claim. But it's always good to have a safeguard. So though it’s tempting to under-insure now and save a few dollars, adequate landlord coverage will help you recover any unexpected property damage or loss of rent.
Landlord vs Home Insurance
Both types of policies cover different things. Home policies provide cover for owner-occupied properties, whereas landlord policies cover the unique scenarios faced by landlords, such as loss of rent, legal liability, and so on.
Landlord Insurance - What is it? What Does Landlord Insurance cover in NZ?
Landlord Property Protection
Property damage can result from everything from natural events to vandalism, so it's important to be prepared. Ideally your policy will also protect your property from gradual damage, especially since tenants don't always report water leaks or even notice damage for a long time.
Too often landlords who let unfurnished properties don’t bother with contents. But whether your rental property is fully, partially, or unfurnished, a contents policy covers more than the landlord’s chattels. Contents also provides cover for fixtures and fittings, including floor coverings, curtains, and dishwashers, making it a good policy to have, even if you let unfurnished.
What is Loss of Rent Insurance?
You can claim for loss of rent if you select the right policy. Depending on your provider, if you have a current tenancy agreement in place and your tenants are unable to live in your rental home due to an event covered by the policy, it can cover the rent up to $20,000 or 12 months, while the house is being repaired. If your tenant leaves without giving you notice, some policies will cover up to 8 weeks of net rent loss. We highly recommend this cover.
Other Handy Options
Legal costs can get expensive. Protect yourself against any legal claims as landlord with liability protection.
Protect your investment property with a full replacement policy. It will enable you to rebuild your entire investment after certain hardships, including house fires. A few extra dollars now is a lot kinder on the wallet than rebuilding a whole house later on.
When extending, renewing, or establishing new tenancies, landlords are required to provide specific information to tenants when complying with Section 13A of the Residential Tenancies Act.
Landlords must insert into tenancy agreements a statement explaining the parts of the insurance policy that is relevant to the tenant’s liability for destruction of or damage to the premises, the amount of each excess that is relevant (if any) to that liability; and inform the tenant that a copy of the policy is available to the tenant on request. Alternatively, if the premises is not insured, this too must be stated.
Some Final Words
Check The Excess
Check the excess in your landlord policy. It’s tempting to increase the amount of excess you’re required to pay on any claim to help make your policy payments smaller, but this prevents you from being able to claim on smaller items which usually occur more frequently than bigger disasters.
Check For Any Claim Requirements
It's common for companies to include requirements that must be satisfied before they will honour the claim, such as proof the landlord has completed a thorough tenancy selection process, or proof quarterly inspections have been completed.
Best Landlord Insurance in NZ?
Check out Tower, AA, AMI, and State for a landlord insurance quote or use their calculator, as well as the many other providers. If you’re unsure about which policy is best, chat to a broker for more advice.
If you're considering new management of your rental, get in touch with our team today.
Locally owned and managed, we offer residential property management services across the Wellington & Hutt Valley region.
We take care of investments, offering peace of mind and a personal service to investors and tenants alike. Our solutions are backed by industry-leading technology and proven systems that promote both excellent property care and strong investment returns. Taking on all aspects of the landlord’s role, we guide our clients with professional, tailored advice using our extensive experience and insight in the rental market that can only be built over time.
If you would like to chat about the possibility of working together, or to receive a no-obligation, FREE Rental Appraisal get in touch with our team today.
Quinovic Johnsonville | Wellington
Call Jordan Atkinson - 027 297 0873
Quinovic Hutt Valley | Wellington
Call Helen Vance - 027 487 8103
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