LANDLORD’S INSURANCE (RESIDENTIAL INVESTMENT PROPERTY INSURANCE)

Residential Investment Property Insurance (for Landlords) is a broad policy designed specifically for residential investment properties. It covers your residential investment property against all the usual major risks and usually, some important extra ones. A typical Residential Investment Property Insurance (for Landlords) covers:


ACCIDENTAL DAMAGE
The policy gives broad protection including cover against accidental mishaps resulting in damage to the building (including fittings and fixtures) or contents. Any exclusions should be clearly listed in the policy so you know exactly where you stand.

MALICIOUS DAMAGE

A more comprehensive cover will cover malicious damage as follows resulting from:


A more comprehensive policy will cover general household contents including curtains, blinds, fittings and even furniture left for the tenant's use. These items are covered against loss resulting from:


A typical comprehensive policy will repair or replace your damaged items under the Building or Contents Section of the Policy to a maximum combined amount of $45 000.

REPLACEMENT VALUE FOR BUILDINGS AND CONTENTS

The standard policy insures your buildings for their replacement cost value. If the sum insured is high enough, the cost of repairing or rebuilding your property to new condition will be covered. It should includes the cost of removing the debris.

Most contents up to 15 years old are covered for their replacement value and in the event of a claim, will be replaced or repaired on a `new for old' basis. The only exceptions are articles consisting solely of fabric, carpets more than 10 years old and electric motors more than 5 years old.

AUTOMATIC INDEXATION FOR SUMS INSURED

To offset the effects of inflation, the sums insured for buildings and contents are automatically indexed in line with quarterly increases in the CPI.

LOSS OF RENT (OPTIONAL)

In the event that your property is so badly damaged that it is untenantable, or where damage to property in the vicinity of your own prevents or hinders access, the policy can cover the rent for up to twelve months until the necessary repairs or rebuilding have been completed. The level of rent paid by your insurance will be limited to the sum insured.

A more comprehensive policy will cover full loss of rent caused by:


Weekly rent is subject to a maximum of $1 000 unless previously agreed.

LOSS OF BUILDING OR LAND VALUE

If the property is totally destroyed, Government regulations may only allow a smaller structure to be built on a reduced area. In this event, a typical policy will cover the difference between the actual cost of rebuilding and the estimated cost for building a structure of the original size and area. Also, if enforcement of legislation results in any loss of land value, this will be covered by your policy.

COMPLIANCE WITH REGULATIONS

Following an insured loss, you may find that you are required to comply with Government regulations, local by laws or building regulations which have been introduced since the property was built. These changes can often involve unexpected expense. A typical policy's replacement value benefit covers these additional costs, up to the limit of the sum insured.

LEGAL LIABILITY AND WORKER'S COMPENSATION

A typical Residential Investment Property Insurance (for landlords) covers your legal liability for injuries to people or damage to property arising from the management or ownership of the property. You are also protected from liability for injuries to people employed in connection with the ownership, operation and management of the property. This clause is only available in those states or territories where it is permitted by law.

A typical policy will cover your legal liability as a landlord for an occurrence which causes:


Limit of indemnity $20 000 000.

EXCESS

Under a typical comprehensive policy the following excesses apply:
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