As a landlord, it is essential that you have insurance for your property, and in the case of furnished apartments and homes, that the contents are insured too. We strongly recommend all our landlords have adequate insurance in place before listing their Wellington property with us.
Unlike residential insurance, landlord insurance requires a different approach and policy type. We’ve put together a useful list of things to consider when insuring your rental property.
· Loss of rental income – will your insurance policy cover you for loss of rental income due to something happening which makes your apartment or house inhabitable through no fault of yours or your tenant? Things such as earthquakes or other natural disasters could make your property untenantable for a long period of time.
· Loss of rent due to theft or malicious damage – while highly unlikely due to our screening processes, should a tenant or their guest deliberately cause damage to or steal from your property, will your policy cover your costs? Many policies don’t cover deliberate damage, so be sure to check with your insurer.
· Liability protection – should someone be accidentally injured or their property damaged, you could be liable to pay damages. Liability protection insurance covers both damages and reparation.
· Property damage insurance – this is cover for the property furnishings or fixtures.
· Contents insurance – providing a fully furnished rental property means you can expect general wear and tear to both furnishings and fittings. Contents insurance will cover costs for repair or replacement that do not meet that condition.
· Repair or rebuilding cost – as an apartment owner, you will need to check if your body corporate payment covers damage to the physical apartment or if you need to insure for a set amount. For a stand-alone home, this policy would cover major repairs or a set rebuilding cost.
Most insurance companies require you to meet set obligations such as tenant screening, monitoring rent payments and undertaking regular property inspections. As your property manager, we would take care of the screening and reference checking of all prospective tenants. We will also actively manage your rent payments and undertake regular property inspections on your behalf.
To learn more about our Wellington property management services for your apartment or house, please contact us directly. We look forward to hearing from you.