LANDLORD’S PROTECTION INSURANCE: WHAT IS IT AND DO I NEED IT?
As an owner of rental property, you expect returns on your investment. No doubt you already have fire and general insurance, but what about protecting yourself other unexpected costs?
This is the purpose of Landlord’s Protection Insurance. Landlord’s Protection Insurance offers financial protection against the wrongful actions of tenants and can cover you for the following sort of things:
- repair of malicious damage caused by tenants or their guests
- loss of rent resulting from malicious damage
- theft of the landlord’s contents from the property
- loss of rent following an abandonment or temination due to a breach of the tenancy agreement
- legal liability cover
- cover for the property being untenantable due to these events
I’ve never heard of it. Is it common?
Yes, most of our clients have chosen to have some sort of Landlord’s Protection Insurance in place.
How much does it cost?
Landlord’s Protection Insurance usually costs around the equivalent of a week’s worth of rent per year. Happily, it’s 100% tax deductible.
Information supplied courtesy of NZInvest.com