When a landlord upgrades their investment property, they might not think about how this will affect their insurance. Landlords who are undertaking renovations should consider increasing the sum insured on their building insurance policy once the improvements are complete. This will help to ensure they are covered for the full replacement value if anything happens to the property. Renovations and other upgrades can also impact a landlord’s contents insurance. A comprehensive landlord insurance policy should provide cover for general household contents including curtains and blinds, carpets, appliances such as dishwashers, light fittings and even furniture left in the property for the tenant’s use. However, the level of contents cover provided on landlord insurance policies can vary. Many landlords do not consider that if they are uninsured or underinsured, they will have to pay any costs out of their own pocket.
For information about landlord insurance call 1800 804 016.
This communication was prepared by Terri Scheer for information only. Professional advice should be obtained before you apply the information to your particular circumstances and whether you are able to engage in these activities.