As property prices in Australia rise to be some of the most expensive in the world, more and more people are renting instead of taking the plunge and buying a house of their own. The opposite side of this is that there are also more landlords in Australia. Because of this, renters insurance and landlord insurance have become vital policies to many Australians and competition among insurance companies has meant better prices for everyone.

If you are a Landlord then it can be a worrying thing, especially if your investment property means everything to you financially. You have to choose the right real estate agent and then you have to make sure they pick suitable tenants to live in your house. If you are a first time landlord then it is also very important to get insurance to cover you for any financial loss that to your investment property (rental property). There is a higher chance as a first time landlord that you make a claim on your insurance as a result of your tenants.

Why are first time landlords more likely to make an insurance claim?

Simply, the poorer you are, the more likely you are to rent where you live rather than own it yourself. It is also a known fact that higher crime rates and landlord policy claims come from areas of lower wealth. In additions, many investment properties are in suburbs or estates where the residents are poorer because that is where you can get a house that is not too expensive. For most people buying their first investment property, they usually can’t afford an expensive place and as it is their first investment they usually go with something small and less expensive. This means that getting the right landlord cover is super important for those who have rental properties in these areas.

If you rent a house then you are likely to have things that are worth money to you such as a TV, computer or furniture. If you get robbed then you could lose it all. Your landlord will almost never insure you against robbery and if you have no cover yourself then you could be out of pocket thousands of dollars. Insurance companies have clued onto this and now there are loads of Australian insurance companies offering insurance to renters. This is a good thing to all renters as the more companies vying for your business then the better the products and prices will be.

If you rent a house or have an investment properly that you lease out then renters insurance or landlord insurance could be just the thing you need. Don’t let unforeseen circumstances cause you financial pain; mitigate your risk with insurance.