If you’ve taken the time, care and investment of furnishing your rental investment property, the way in which you rent the property will affect the type of insurance you take out.

You might rent it furnished to meet the needs of renters where your property is located or temporarily rent out your home while you live elsewhere. Renting a property furnished can add value to a property, but it can also bring with it its own risks.

The policy you take out will have inclusions and exclusions, and it’s important to understand what different policies will offer, especially in cases of furnished properties.

For example, if you take out a contents policy for your own home, it’s usually as a bundled home and contents policy. That means the contents are defined as all your personal possessions within that property, from large items like appliances and furniture down to smaller items like coffee cups and pillows. 

Landlord contents cover is different, and each policy will have different definitions of what constitutes contents. Usually, the contents part of a landlord policy covers fixed or permanent items in the home only, which covers the flooring, curtains or window dressings, built-in appliances like dishwashers or wall-mounted dryers, in-built storage, heating or air conditioners, and light fittings. 

If your property is within a strata complex, contents include internal paint, fixtures or improvements that the body corporate is not required to insure, by law.

This means that things like furniture or non-fixed appliances are not covered under landlords contents, nor does it cover the contents owned by the tenants.

In the instance that your rental is furnished and ready for tenants to use, you’ll need to make sure you have additional contents cover or insurance for non-fixed items. 

Each policy will be different, so it’s critical to check that your policy will cover the non-fixed items in the home. Taking an inventory of the furniture and non-fixed items in the home that are included for tenant use makes it easier to determine what should be included on the property condition report and for the sum insured. 

To learn more about what Eagle Protect product might be right for you, please get in touch with our team here. 

Published On: April 22nd, 2021 / Categories: News /

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