Real estate agents should ensure landlords take out appropriate insurance cover, according to one major group.
“It is important for landlords to realise the cover they need should extend beyond the normal building insurance policy, which does not cover things like willful damage to their property, failure to pay rent, or claims made against them by their tenant,” First National Real Estate CEO, Ray Ellis said
“Summer is always a busy time in the rental market as tenants find it more convenient to move at the start of the school year, and the holiday letting market also produces increased interest.
“Landlord protection policies differ widely.
“Some, for instance, are designed to be used in conjunction with a typical home and contents or strata title policy, while others are more comprehensive. We also help our tenants find contents insurance, which can be challenging for those living in a shared household.”
According to industry research, less than half of all self-managing landlords have specific landlord insurance, even though three out of five recognise a bond is not sufficient to cover most incidents with tenants.
Landlords who use real estate agents to manage their relationship with tenants face fewer problems than those who self-manage their investment properties.