More than two million Australians own an investment property but a high number of landlords do not have the right insurance.
Figures by the Landlords’ Advisory Service found that approximately 40% of landlords do not have specialised landlord insurance, reported News Corp Australia Network.
Landlord insurer Terri Scheer’s executive manager Carolyn Parrella said it was not uncommon for landlords to have the wrong cover.
“A lot of time landlords have an insurance policy on their property but it won’t be a specific landlord’s policy, it might just be a normal home and contents policy,’’ she said.
“It may not cover them for the types of loss they suffer as a result of it being an investment property.”
Loss of rent is one of the most common claims among Terri Scheer customers.
The Insurance Council of Australia’s spokesman Campbell Fuller said signing up to regular home and contents policies generally wouldn’t cut it, so specific insurance tailored to landlords is best.
He also warned that “landlord insurance is not designed to cover short-term holiday rentals of the type typically promoted by online platforms”.