How has COVID-19 changed landlord insurance?
Landlords looking to insure their investment properties may have noticed a few changes to the landlord insurance marketplace recently. We take a look at what changes have occurred and what they could mean for insuring rental properties.
The COVID-19 pandemic has hit the economy hard, causing a number of financial service providers to change the way they do business. Companies providing landlord insurance products are among those who have altered their product range.
Many insurers have stopped selling landlord insurance altogether. Those that do still sell landlord cover may have stopped offering loss of rent or tenant default cover options. It is important to note that having landlord insurance does not mean you are automatically covered if your tenant cannot pay their rent.
New landlord insurance policies are available from some insurers with an adjustment to the Tenant Default component of the policy. Some insurers are still offering policies with cover for theft or burglary by a tenant, while others listed this as now being excluded.
It is a wise idea to find out exactly what an insurer is willing to cover prior to entering into an insurance contract.
Landlords with existing policies should still expect to be covered for any tenant risks listed in their Product Disclosure Statement (PDS), but it is important to check with your insurer.
We recommend all of our clients do their research to find a comprehensive landlords insurance policy that suits their needs and look into their current policy if they have one to check what they are able to claim for.