Insurance is important for both landlords and tenants. Landlords should insure their rental property against any damage. Tenants should also have insurance for their belongings, including their vehicle, and to protect them from liability.
Liability for Damage
If tenants or their guests carelessly cause damage in a rental property, they will be liable for the cost of the damage up to four weeks’ rent or the landlord’s insurance excess, whichever is lower.
Insurance for Tenants’ Belongings
We strongly recommend that our tenants get insurance. Your landlord’s property insurance doesn’t cover your belongings. This can be devasting when there are extreme weather events, or any other event that may occur that results in damage to a tenant’s belongings and they find themselves uninsured and in financial difficulty.
Motor vehicle insurance
Just as a landlord’s insurance does not cover tenants’ belongings, it also doesn’t cover a tenant’s vehicle for damage or theft. Speak to an insurer about insurance cover for your vehicle/s.
Consider getting the following insurance:
• Contents insurance to cover your belongings
• Motor vehicle insurance
• Personal liability insurance to protect you in certain situations.
Speak to an insurer for more information about personal liability cover in a rental home.