Landlord insurance

[fdaniels]

Hey guys,

I plan to rent my primary residence while I am overseas for a few years. I have two questions.

1. Do I need to take our special insurance to cover damages now that I will have other people occupying the property.
2. Do I need to make changes to my existing insurance.

I don't want to get into a situation where the geyser breaks, but then insurance refuses to pay out because I am no longer the primary resident.

Thanks!

 

[the eskimo]

1. You do not need to take out special insurance as any damage (not related to wear and tear) can be recovered from the tenants deposit.

2. You will need to notify your insurer that you are now renting the property out. You can also cancel any contents (householders) insurance (unless you are letting furnished). You should keep your buildings (homeowners) cover (it is required if the property is still bonded).

Also, it would be worthwhile to have somebody around (ideally not the tenant) who has details of your insurance that should a claim need to be made they could act on your behalf while out of the country.

 

[fdaniels]

Brilliant! Thanks for the advice.

 

[Carol35]

You should also have provision set aside to cover your bond(if still bonded) for at least 6 months in the event of a tenant not paying.