Is Your Landlord Insurance Up To Date?
Landlord insurance is one of the most important protections you can have as an investment property owner. Equally vital is completing an annual review to ensure your policy still offers the right level of cover for your rental property.
The team at One Agency Coastwide has put together this quick landlord insurance health check to help safeguard your investment and ensure your property remains fully protected.
1. Check You Have Adequate Cover
“The first thing you need to check is if you have enough cover,” says Adele Andrews, Licensee at One Agency Coastwide.
“Property values change, renovations add value, and some owners take out policies in a rush. Your annual insurance health check is the perfect time to review your property’s current value and the cover you’ve already got.”
Every investment property is unique. A one-size-fits-all landlord insurance policy won’t give every owner the right protection. Make sure your policy aligns with your property’s needs and that all key risks are appropriately covered.
2. Understand the Cost of Making a Claim
If you’ve never made a claim, you might not be aware of the excess structure. Some landlord insurance policies require the equivalent of the tenant’s bond as excess, while others charge a flat rate.
Review your policy to understand:
- How much you’ll pay in excess
- What variations apply
- Any limits or special conditions
Being aware of this ahead of time prevents unwelcome surprises later.
3. Ensure the Property Is Secure
Are all the door and window locks working properly? Landlords must provide a secure rental property. If a break-in occurs and locks are faulty, the tenant’s contents insurance may be void—and you may be liable for their losses.
Even worse, your landlord insurance provider may refuse to cover property damage if adequate security wasn’t in place.
4. Confirm Fire Safety Compliance
Just as with locks, landlords must ensure all fire safety devices—especially smoke alarms—are installed and functioning at all times. Failure to maintain compliant fire protection can result in denied claims and significant out-of-pocket expenses if a fire occurs.
If you’re unsure how to check or maintain fire safety devices, consider hiring a professional service to complete annual checks on your behalf.
5. Review Rent Arrears Cover
Many landlord insurance providers require a fixed-term lease agreement for rent arrears claims. If your tenant is on a periodic lease, check with your insurer to confirm whether you're covered.
“Read the fine print – for this section and the whole policy,” advises Adele.
“Make sure the policy covers all eventualities. Not all landlord protection insurance policies offer comprehensive cover, so it pays to compare insurers and understand what each one includes.”
Check:
- Claim limits
- Required documentation
- Whether legal expenses are covered
- The circumstances under which rent arrears are paid
These details vary greatly between providers.
6. Check Accidental Damage and Public Liability Cover
Tenants are responsible for any damage they cause, but accidents do happen. Make sure your landlord insurance includes:
- Accidental damage cover
- Adequate Public Liability insurance
Public Liability is crucial—it covers injuries to tenants or their guests, particularly if an incident occurs due to a maintenance issue.
7. Do Your Homework on Your Insurer
Many landlords take out insurance when they first buy their investment property, often during a busy, stressful period. Your annual review is the perfect opportunity to check reviews and see how your insurer is performing.
Adele explains:
“One of the biggest things to look for is how long they take to pay a claim and whether the process is simple. If your insurer isn’t performing well in these areas, consider switching. Dealing with damage is stressful enough—you don’t need the added frustration of a difficult provider.”
