What Landlord Insurance covers

If you own a rental property, having the right insurance cover is an essential part of protecting your investment. Standard House Insurance is generally not enough to cover the additional risks that come with renting out a property. That’s where Landlord Insurance comes in.

Landlord Insurance is a specialised insurance cover for property owners who rent out residential properties. It’s designed to address the various risks and challenges landlords may encounter, offering financial security in the event of accidents or issues with tenants.

Landlord Insurance typically covers:

• Loss of rent: If a property is left uninhabitable or if a tenant defaults, Landlord Insurance covers loss of rent so landlords can continue to receive rental income even when the property is vacant or unable to be rented out.
• Contents owned by the landlord: Landlord Insurance may cover the cost of repairs or replacement of fixed chattels such as wall ovens, dishwashers and heat pumps. However, additional cover options or add-ons may be needed to ensure coverage extends to unfixed chattels such as washing machines and televisions if the landlord provides these.
• Intentional damage by tenants: Deliberate damage to rental properties or misconduct by tenants, including vandalism and theft, can be extensive and expensive. Landlord Insurance covers the cost of repairs, so landlords are not left carrying the financial burden.
• Legal liability: Landlord Insurance can protect landlords against claims for injury or property damage arising from incidents on the rental property, ensuring landlords are financially protected should a lawsuit or legal claim be brought against them by tenants or third parties.
• Methamphetamine contamination: Some Landlord Insurance policies cover expenses associated with identifying methamphetamine contamination and repairing physical damage to the property.

What Landlord Insurance doesn’t cover

When it comes to finding the right Landlord Insurance, it’s important to carefully check the policy’s specific cover limits and exclusions, as not all Landlord Insurance policies offer full cover. Additionally, Landlord Insurance policies generally won’t cover:

• Gradual damage: While Landlord Insurance may cover structural damage to the rental property, it doesn’t cover gradual damage, everyday wear and tear, mould and rot. These issues are considered maintenance-related and are the responsibility of the property owner.
• Tenant’s contents: Personal belongings of tenants living in the rental property are not covered by Landlord Insurance. Tenants are responsible for insuring their own things with Renters’ Insurance to cover against damage, theft or loss due to fire or natural disaster.

Understanding Landlord Insurance

Landlord insurance can be provided as an optional add-on to an existing House Insurance policy or offered as a stand-alone policy in the case of investment properties that operate under a body corporate that have Home Insurance cover taken out by the body corporate.

Work with a Max Insurances Adviser to better understand what is and isn’t covered by Landlord Insurance, and get help finding Landlord Insurance that meets your specific needs and provides adequate protection for your investment property.

For comprehensive Landlord Insurance solutions tailored to your investment property, contact a Max Insurances Adviser today.

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Planning a home renovation

Home renovations are an excellent way to add value to your home and really make it your own. But don’t get too caught up in your renovation project and neglect to inform your insurance company of the changes you’re planning to make. The last thing you want when it comes to making a claim is to find out that your home is underinsured or not sufficiently covered.

Most house insurance policies don’t cover major renovations, while some will cover minor, non-structural work only. But no matter what type of renovation you’re planning – whether it’s a major building work or a new deck – any changes you make to your home could impact your house insurance. So, before you proceed with your renovation project, it’s a good idea to check with your insurance company or insurance adviser to find out if any additional cover is required.

Once the works are completed, remember to update the sum insured on your house insurance policy if the renovation has changed the value of your home. You may also need to update your contents insurance if you’ve added expensive items to your home that need to be included in this policy. Reviewing your house insurance regularly and updating your insurance company any time a renovation is planned ensures you have the right cover to fit your changing needs.

And remember, if you’re considering financing the cost of your renovation, get in touch with the personal lending team at Max Loans to discuss a home improvement loan. Or, to find out about adding the renovation costs into your home loan, contact one of the experienced Mortgage Advisers at Max Mortgages. And you’ll find some handy tips on getting your home ready for summer in this blog post.

Renting out your home or a room

These days it’s not uncommon for homeowners to rent out their homes, or rooms in their home, to earn a rental income and help cover mortgage repayments. But having tenants in your home comes with some risk, and that’s why it’s so important to ensure your home is protected with adequate house insurance cover should something go wrong.

If you’re considering having tenants stay in your home or renting out a room in your home, it’s important you’re clear on how this could impact your house insurance. Contact Max Insurances to talk to an Insurance Adviser about landlord insurance to cover against any damage caused by tenants, loss of rental income, and landlord liability. This type of insurance may offer more comprehensive cover and could replace the need for general home and contents insurance.

Leaving your home vacant for an extended time

Leaving your home empty while you travel or stay elsewhere could make it an easy target for criminals and break-ins. It could also mean more damage in the event of a fire or a water leak if the problem is left undetected for some time.

Insurance companies need to be advised if you are planning to leave your home vacant for more than 60 days, as the increased insurance risk of an unoccupied or vacant home could mean any claim you make while your home is empty gets declined. And any damages or losses you incur with a vacant home may have to be paid for out of your own pocket if you fail to advise your insurance company beforehand.

Starting a business from home

Whether the result of the pandemic or simply a personal choice, more New Zealanders are working from home – or running a business from home – than ever before. Depending on the type of business you run and the activities you undertake in your line of work, running a business from home can increase the risk of loss occurring to your buildings and contents.

So if you are running your business from home, you’ll need to update your insurance company to ensure you have adequate insurance cover for any stock you hold at home or business equipment or machinery used in your business. Your insurer will need to know about these items should you need to make a claim due to loss or damage.

What’s more, if you have customers or suppliers that visit your premises, you may need additional liability insurance to cover any accidents or injuries on site, so it’s a good idea to get in touch with a Max Insurances Adviser to discuss your individual needs when it comes to updating your house insurance to cover working from home or starting a business from home.

Review your insurance regularly

Your insurance needs change as your lifestyle changes, which is why it makes sense to regularly review your insurance policies. That way you can be assured you have the right insurance cover to fit your needs, and you’re not paying for insurance cover you don’t need or missing out on vital insurance cover. For all your house insurance, contents insurance, and general insurance needs, talk to a Max Insurances Adviser today and let us help you compare insurance NZ wide to find the best deal!

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1. Car Insurance

Depending on the level of cover you choose, car insurance can protect you against financial loss should you cause or be involved in an accident, cause damage to someone else’s property, or if your car is stolen or damaged by fire.

Although car insurance isn’t mandatory in New Zealand, most car owners choose some form of insurance cover for their vehicle. After all, losing a car through theft or an accident is not only a significant financial loss, it could also impact your earning ability if you’re unable to get to work.

When it comes to car insurance, there are generally three types of insurance cover:

1. Third party car insurance is usually the most affordable car insurance, covering your legal liability should you cause an accident and damage someone else’s car or property. Any damage to your own car or property is not covered though. This type of car insurance is ideal if you have a low-value car and you’re willing to replace or repair the car at minimal cost.
2. Third party, fire and theft is similar to third party car insurance, but it also covers your car for loss or damage by fire or theft.
3. Comprehensive car insurance offers full protection with cover for accidental damage to your car and other cars and any property in an accident that you cause.

Working with an Insurance Adviser like those at Max Insurances, we can help you determine which type of cover would fit your needs best. And we can also offer advice around insurance cover for other types of vehicle, including boat insurance, caravan insurance, motorhome insurance, motorcycle insurance and classic car insurance.

2. House Insurance

As probably your most valuable asset, it makes sense to protect your home with house insurance, to cover events that are out of your control. Like an earthquake, fire, or a burst pipe that could cause extensive damage to your home. Also, most lenders require you to have house insurance in place when you apply for a home loan.

Whether it’s a repair or a rebuild, house insurance protects you from significant financial loss should something happen to your home. It can also cover things like:

1. Temporary accommodation if you’re unable to live in your home while it’s being repaired or rebuilt.
2. Clothes, furniture, electronics and personal items lost because of theft or damage.
3. Your legal liability should you or a family member cause damage to someone else’s property, or if someone is injured in your home.

Insuring your home for the right amount is vital. An experienced Insurance Adviser like those at Max Insurances can help you compare house insurance policies to find the right cover for your needs.

3. Contents Insurance

No matter how careful you are, things can happen that are out of your control, sometimes damaging or destroying your personal possessions. With contents insurance, anything from clothing and jewellery to electronics and furniture can be repaired or replaced if they’re damaged or destroyed by insured events, which may include natural disasters, theft or fire, and accidental damage.

The cost of replacing the things you own can easily run into thousands of dollars. Contents insurance brings peace of mind, knowing that your things can be repaired or replaced without you having to foot the bill.

When it comes to choosing the right contents insurance, it’s a good idea to compare both price and level of insurance cover. An experienced Insurance Adviser like those at Max Insurances can help make this process easier, and ensure you have a thorough understanding of what’s covered and what’s not.

4. Renters or Landlord Insurance

Whether you’re a renter or a landlord, damage to rental property can end up costing you thousands of dollars. Having to pay for the cost of repairs or replacement can leave a significant hole in your budget.

Most landlords have insurance that covers the physical structure of their rental property, along with their own possessions inside the property. However, if you are a tenant, it’s worth bearing in mind that landlord insurance usually covers damage caused by tenants, loss of rental income and landlord liability, but these policies typically don’t cover tenants for any loss or damage to their own personal possessions inside the rental property-which is why renters insurance is useful for renters.

Renters insurance, also called tenants insurance, covers items inside the rental home, including things like mobile phone, electronics, furniture and clothing. It could also extend to personal belongings in the driveway, garage or a car. What’s more, renters insurance can also protect legal liability when it comes to loss, fire or any water damage you may accidentally cause to the property you’re renting.

Finding insurance cover that provides flexibility and good value – to suit renters or landlords-can be a challenge. With expert knowledge in a range of insurance products and access to a wide variety of insurers, Max Insurances can help you find the right insurance cover at the best price.

5. Travel Insurance

Whether you’re travelling near to home or far from home, changes to your travel plans, cancellations or illness can end up costing you in both time and money. When you need to change your holiday plans– or if your plans change because of events that are out of your control– travel insurance lets you get on with enjoying your holiday without worrying about the extra expense and unbudgeted costs that could result because of illness, loss or damage, cancellations or emergencies.

Travel insurance can also be used to pay for:

1. Medical costs due to illness or accident: however, most standard policies may not cover pre-existing conditions and you may need to pay extra to get cover for that condition.
2. Rebooking flights or accommodation when flights are disrupted.
3. Returning home in an emergency situation.
4. Luggage, credit cards or passports that may be lost or stolen while on holiday.
5. Injuries to someone else or damage to someone’s property.

All your insurance needs under one umbrella

When it comes to insurance, there’s a lot to understand. Many insurance policies are written using complicated language and hard to understand terms and conditions. It can be challenging trying to compare insurance cover, pricing and exclusions. That’s why it makes sense to work with an experienced Insurance Adviser. At Max Insurances, we specialise in helping Kiwis arrange insurance NZ wide, and we are also there for you at claim time if need be.

Our team are experts at understanding insurance jargon, and we can help you understand it too. What’s more, we know that your needs are unique, so we work hard to find the right cover to fit your lifestyle and budget. For all your insurance needs, talk to us to get the right advice! Find out more about the types of insurance cover we can help you with, by getting in touch with our team today.

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