If you’re a landlord, we do not doubt that you need to protect your investment. Similarly, if you’re a tenant, you probably want to protect your belongings and yourself. In this article, we wanted to offer you some information about Landlord Insurance and Renters Insurance. So, we went to industry experts AMI for the low down!
Q: Is Landlord insurance a legal requirement?
A: There is no legal requirement to take out any kind of insurance in New Zealand but we would strongly encourage landlords to consider getting cover, so they’re insured should a loss happen.
Q: In a nutshell what does a Landlord insurance policy generally cover?
A: All insurers’ offerings are different so it’s important to understand what you’re paying for as they won’t necessarily enable you to easily compare “apples with apples”.
An AMI Premier Rental Property Policy allows landlords to choose from a range of optional additional benefits that aren’t normally covered by a standard house policy, including:
- Landlord’s contents
- Lost rent for up to 6 months (if the house is uninhabitable due to an insured loss)
- Excess-free claims for damage to glass or sanitary fixtures (e.g. baths, toilets)
- Lost rent due to the tenant vacating the property without providing the required notice to allow you time to advertise and arrange for new tenants up to 8 weeks
- Theft or deliberate damage by tenants up to $3000
Q: Why is it important to have a Landlord insurance policy, rather than standard buildings and contents cover?
A: As above, the additional optional benefits are not available under AMI’s standard house policies. Choosing a product like premier rental property enables each landlord to have a choice about the level of risk they are prepared to take on, or whether they want to take out insurance as protection against those risks.
Q: Does a Landlord need building/contents cover as well as a Landlord insurance policy?
A: AMI allows landlords to add any of these optional benefits added to a standard rental property policy. They are not available as “standalone” policies. Some insurers may offer products differently.
Q: Is there anything that needs to be done when vetting clients to ensure the Landlord insurance policy is valid?
A: Every insurer has their own requirements, so it will pay to check your own policy. For example, under our premier rental property policy, landlords or their agents need to undertake appropriate pre-tenancy checks, including referee checks. We may request a copy of these at any time, so it’s best to make sure you keep records.
Q: Does Landlord insurance cover a tenant’s personal property?
A: No, tenants need to arrange their own insurance cover for items they own.
Q: In a nutshell what does a Renters insurance policy generally cover?
A: In 2016, AMI launched a marketing campaign to raise awareness of the AMI Advanced Contents insurance policy, referred to as the AMI Renters policy. It’s a top of the line product which provides replacement cover for most insured contents. If tenants are unsure about their cover or have any questions, we’re just a phone call away.
Q: Does a Renters insurance policy cover contents only in the home?
A: For the AMI Advanced Contents (renters) policy, cover applies to contents in the home and temporarily removed from the home for use anywhere else in New Zealand. It also covers the contents you purchase while you transport them home, such as the new TV that you’ve just bought but haven’t got it home yet.
Q: Does a Renters insurance policy cover anything other than contents?
A: The AMI Advanced Contents policy also includes automatic additional benefits such as personal liability (which covers your legal liability for damage you cause to another person’s property and/or bodily injury to another person) and alternative accommodation if you need to temporarily live somewhere else because your home is uninhabitable.
Q: Does a Renters insurance policy cover any of the Landlord’s effects/furniture that may be included in the rental?
A: No, the landlord would need to take out their own insurance to cover items they own.
If you’re a landlord with an investment property to rent, contact Bayleys Marlborough Property Management team to find out how we can help. Similarly, if you’re looking for a rental property do give us a call so we can help you find a home!
We would like to thank AMI for their help and expertise in helping us produce this article for you.