Tips for Choosing Loss of Rent Insurance
As an insurance broker, we’ve seen how the right policy can make all the difference. Here are some tips to help you choose:
- Compare Policies: Not all Landlord Insurance policies include Loss of Rent Insurance as standard. Some offer it automatically, while others may require it as an add-on.
- Read the Product Disclosure Statement (PDS): Check the fine print for coverage limits, exclusions and waiting periods.
- Assess Your Risks: If your property is in a high-risk area for storms or floods, ensure your policy covers these events.
- Work with an Insurance Broker: A broker can help you compare options from multiple insurers to find a policy that fits your budget and needs.
Key Considerations When Choosing Loss of Rent Insurance
- Understand Coverage Needs: Assess the type of property, rental income and potential risks (e.g., property damage, tenant issues or natural disasters) to determine how much coverage is necessary.
- Policy Scope: Ensure the policy covers scenarios like tenant eviction, property damage or uninhabitability due to covered perils (e.g., fire, flood, or storm). Check if it includes additional costs like legal fees or temporary accommodations.
- Exclusions and Limits: Review what’s not covered (e.g., vacancies due to market conditions) and any caps on payouts, typically based on a percentage of rental income or a fixed period.
- Insurer Reputation: Research insurers for reliability, customer service and claim processing efficiency. Check reviews or ratings on trusted platforms.
- Cost vs. Benefit: Compare premiums against coverage limits and deductibles (or excess. A lower premium might mean higher out-of-pocket costs during a claim.
- Policy Add-Ons: Consider whether you need extras like Business Interruption Coverage or protection for short-term rentals (e.g., Airbnb).
Do you want to learn more or explore your options? Drop us a line and read our blog now!Â
Work with us at Tank Insurance in covering your loss rental income during repairs, keeping your investment property profitable even when the unexpected happens.
