The importance of protecting your rental

A rental property can be a valuable investment, but as with any investment, there can be risks. As a landlord, you may find yourself footing the bill if things go wrong with your tenants or property. That’s why having the right protection in place is so important.

Regardless of what insurance cover you choose, it’s important to take the time to understand how it works and what your options are, so you can ensure your cover meets your needs.

Landlords can sometimes be surprised to learn that standard home insurance may not cover everything they need for their rental properties. Generally, home insurance may only cover things that are permanently fixed to the house, such as a kitchen, bathtub, or carpet. It might not cover things like furniture or other chattels.

Typically, home insurance policies are designed to cover accidental damage – not deliberate. That means you might not be able to rely on a home insurance policy if a tenant causes damage to your property on purpose.

This is where specific cover for landlords could be useful. Landlord cover may provide protection for events that are specific to rental properties – like damage by tenants, loss of rental income, or your legal liability as a landlord. For example, Vero, our trusted partner, offers an optional Landlord’s extension on their home insurance policy. This may cover things like loss of rent and malicious damage caused by tenants. 

If you decide to purchase specific landlord cover, this could be an add-on to your standard home insurance policy, or it might be a separate landlord insurance policy.

If you decide you don’t need specific landlord cover for your rental, depending on your home insurance policy, you may need to tell your insurer that your property is tenanted rather than owner-occupied − as there may be special conditions or excesses applied to your policy.

While landlord insurance is designed to help protect your investment, your obligations may not stop there. It’s also a good idea to think about how you're going to keep up with the necessary maintenance, meet any property legal requirements, and how you’re going to select tenants who care as much about the property as you do.

If you choose to take out specific landlord cover for your rental property, make sure you thoroughly read the policy document so you’re aware of any policy conditions and landlord obligations that might need to be met, to keep your insurance valid. For example, you may need to be careful when selecting your tenants, make sure you receive rent payments, and inspect your property regularly so you can identify and solve any problems as soon as possible.

At ANZ, we’ve partnered with some of New Zealand’s leading insurance specialists to help you protect what’s most important. For home and landlord insurance cover, our trusted partner is Vero. Find out more about how Vero’s Landlord’s extension benefit can help protect your properties and to check whether it’s right for you.