Ep.05 | What You NEED To Know About Landlord Insurance

What you need to know about landlord insurance | The Property Blueprint Podcast Ep.05

Tuan Duong

The Property Blueprint Episode 5: What You Need To Know About Landlord Insurance

Owning a rental property can be a lucrative investment, but it also comes with risks. To safeguard your investment and protect yourself financially, it’s essential to understand the importance of landlord insurance and property investor insurances.

In the latest episode of The Property Blueprint, we have an insurance expert on to help us understand more about landlord and building insurance, and also to shed light on the mysteries and misconceptions about insurance brokers and the insurance industry in general.

Don’t miss this captivating instalment, where we sit down with Thong Ho (from Duo Insurance) and delve into his inspiring journey and talk about his passion for all things insurance.

In addition to the fascinating discussion on the podcast, we’ve created a brief guide on what you need to know about landlord insurance.

What You Need to Know About Landlord Insurance

As an insurance partner dedicated to helping individuals navigate the complex insurance landscape, Thong shared valuable insights from his knowledge and experience.

From Humble Beginnings to Insurance Success:

Thong Ho takes us on his remarkable journey, sharing how he defied the odds and built a successful career in the insurance industry. From humble beginnings to becoming the Director of DuoInsurance, Thong’s story is a testament to hard work, determination, and finding your true calling.

Unveiling the Benefits of an Insurance Broker:

Thong discusses the significant advantages of working with an insurance broker. He highlights the expertise and industry knowledge that brokers bring to the table, helping clients navigate the intricacies of insurance policies. From policy selection to claims assistance, Thong emphasizes the value that insurance brokers provide in simplifying the insurance process for property owners.

Why Landlord Insurance Shouldn’t Be Ignored:

Thong sheds light on the importance of landlord insurance for property owners. He explains the specific risks faced by landlords and how landlord insurance can mitigate these risks. From property damage to liability claims, Thong emphasizes the need for comprehensive coverage tailored to the unique requirements of rental property owners.

Understanding Product Disclosure Statements (PDS):

Thong emphasizes the significance of reading and understanding Product Disclosure Statements (PDS). He highlights how PDS provides vital information about policy coverage, exclusions, and terms and conditions. Thong provides guidance on how to interpret and analyze PDS to make informed decisions when choosing insurance policies.

The Importance of Honesty in Insurance:

Thong emphasizes the importance of honesty when it comes to insurance. He discusses the impact of providing accurate and transparent information during the application process, as well as the potential consequences of misrepresentation. Thong stresses that maintaining honesty builds trust and ensures a smooth claims process.

The Right Name on the Policy:

Thong explains why having the right name on the insurance policy is crucial. He shares insights into the importance of accurately listing the named insured and ensuring alignment with property ownership structures. Thong provides clarity on how getting the name right can prevent complications during claims settlements.

Factors to Consider When Choosing an Insurance Broker:

Thong outlines key factors to consider when selecting an insurance broker. From evaluating their reputation and experience to assessing their customer service and claims process, Thong guides listeners in choosing a trusted insurance partner.

We also introduce an exciting new segment on the Podcast called the ‘Property Blueprint Brain Buster’: Tuan Duong and Daniel Simone get Thong’s expert opinion on a real-life case study/situation where an investor signed the contract on a property but in the intervening period between exchange and settlement there was a big storm that ruptured a hole in the roof.

Thong answers the questions:

  • Who’s ultimately responsible for covering the costs?
  • Why the seller has no interest or incentive to fix the roof, and
  • When is the best time to take out Landlord insurance?

The answers may surprise you, so make sure to tune into this episode.

How to Download or Listen to Episode 5 of the Property Blueprint

We’ve made it easy for you to watch or listen to Episode 5 of What You Need to Know About Landlord Insurance – by making it available on all major platforms including Youtube, Spotify, Apple Podcasts and Google Podcasts. Alternatively, you can listen now using the podcast player below.

Securing Your Investment: A Guide to Landlord and Property Investor Insurances

Landlord insurance is a specialised insurance product designed to protect property investors who rent out their properties. It is essential for investors to have landlord insurance as it offers vital protection against potential risks and financial losses associated with owning and renting out properties.

If you don’t have landlord insurance, you’ll be liable for repair costs to your property should your tenants (or their guests) cause damage. While you can minimise the risks of this happening by putting prospective tenants through a rigorous screening process, it’s not only malicious tenants who cause damage.

The importance of landlord insurance for property investors stems from the following benefits it provides:

  • Property Damage Coverage: Landlord insurance covers damages to the rental property caused by events like fire, storms, vandalism, or other insured perils. This coverage ensures that investors can repair or rebuild their investment without facing significant financial burdens.
  • Liability Protection: In the unfortunate event that a tenant or visitor sustains an injury on the property and holds the landlord responsible, landlord insurance can cover legal expenses and potential liability claims. This safeguard protects the investor’s assets and finances.
  • Loss of Rental Income: Landlord insurance helps investors during times of property damage that renders the unit uninhabitable. It reimburses them for the lost rental income during the restoration period, preventing income gaps and preserving cash flow.
  • Tenant Default Coverage: Investors can be protected against tenant defaults through landlord insurance, which covers unpaid rent or expenses related to eviction and re-renting the property.
  • Personal Property Coverage: Landlord insurance can also extend to cover the landlord’s personal belongings, such as appliances and furniture provided with the rental property. This ensures protection against damage or theft of these items.

Is Landlord Insurance Tax Deductible?

The good news for property owners is that, as a general rule, landlord’s insurance premiums are tax-deductible, as are legal costs required to evict a tenant. If you can claim these costs as tax deductions, it really makes good sense to invest in landlord insurance.

Benefits of Working with an Insurance Broker

A quality insurance broker ultimately represent the interests of their clients and are there to help investors minimise, manage and provide cover options for a host of risks associated with property ownership.

Collaborating with an insurance broker offers distinct advantages for property investors seeking landlord insurance:

Expert Guidance: Insurance brokers are experienced professionals with in-depth knowledge of the insurance market. They assess the unique needs of property investors and recommend appropriate coverage, tailored to match specific requirements.

Access to Multiple Options: Brokers have access to a wide range of insurance products from various insurers. This allows investors to compare multiple policies and find the best coverage at competitive prices.

Time and Effort Savings: Brokers handle the entire insurance shopping process on behalf of investors, saving them time and effort. They manage paperwork, negotiate with insurers, and handle claims, streamlining the insurance process.

Personalised Service: Unlike dealing with direct insurers, brokers offer personalized service, building long-term relationships with clients, and being readily available to address concerns and update coverage as investment portfolios evolve.

Claims Advocacy: In case of a claim, brokers advocate for their clients, ensuring a fair and efficient claims settlement process. They can help investors navigate complex claims procedures and maximize their entitlements.

Landlord and building insurance is crucial for property investors as it provides protection against various risks and financial losses. By working with an insurance broker, investors gain expert guidance, access to multiple options, and personalised service, making the process of obtaining and managing landlord insurance more efficient and effective.

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Disclaimer: Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to property investors. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek a second professional opinion for any legal or tax issues raised in your investing affairs.

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Tuan Duong

Tuan is an award winning Quantity Surveyor and leads Duo Tax Quantity Surveyors – Australia’s fastest growing provider of Tax Depreciation.

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