If you are considering renting out your home as you move elsewhere, you need to consider getting insurance that will cover both your property and the tenants. In most cases, you may need to switch your insurance cover to one that suits a landlord.
When renting out a house in Australia, it becomes a different kind of risk from owning the home yourself. For instance, it may be difficult for you to maintain the property because you will not be around to keep an eye on everything.
Switching from home insurance to landlord insurance will benefit you. This is because as a homeowner, you will have limited sight on potential issues and you will have to rely on your tenants to report anything that needs to be sorted.
Initially, when you had your first insurance, you may notice that it has public liability insurance added to it. However, it may only cover domestic use in the property; it does not include any legal liabilities for your renting business. For instance, if your tenant falls and trips on uneven ground in your property, property owner insurance will be helpful.
The residence insurance also protects you as an occupier in case your family cannot stay in the property due to some events such as fire. Since it is mandatory to protect your tenants and cover them in such situations, then you will require proprietor insurance.
The property owner insurance can also assist you in replacing lost rent. In cases where unforeseen events such as a fire or flooding take place making your rental house to be uninhabitable, this specific insurance covers you on that.
Also, when tenants cause some willful damages like stealing pipes or doing illegal businesses, your proprietor insurance covers you from such malicious damages.