When times get difficult everyone naturally takes a look at the expenses that can be trimmed back, whether they be business or personal. Back in the early 90’s landlord insurance was pretty much considered a novelty, today astute landlords include it on their “must have” list to help protect against the unexpected, but is landlord insurance a luxury rather than a necessity?

EBM Insurance Brokers have been arranging landlord insurance for almost 20 years, and with over 70,000 policyholders are regarded among the leaders in the industry. General Manager Sharon Fox-Slater was happy to provide a few facts that may make many landlords sit up and listen, and with EBM paying around 5,500 claims annually it can be said with some authority.

“These days most landlords see the need to have suitable cover in place but unfortunately can become extremely confused with the choices that are available out there. It never ceases to surprise us how many have misconceptions of the cover that they should have in place, or simply know what to look for”.

Ms Fox-Slater explained that even in a typical situation where a lease is due to expire many tenants feel it is their “right” to simply run out their bond by not paying the last four weeks rent. Unfortunately this leaves nothing for the ever-too-regular cleaning and minor damage that needs to be carried out, leaving the landlord to chase it through the courts.

“In this simple situation a good landlord insurance policy will pay the “defaulted” rent and free up the bond for any expenses that the landlord is entitled to. In saying that, there are many policies out there today that are imposing unreasonable excesses on loss of rent claims which may in fact render the claim worthless” said Ms Fox-Slater.

For more information on EBM’s RentCover range of products you can visit www.rentcover.com.au