Landlord insurance demystified

If you own rental or investment properties in New Zealand, having landlord insurance is a smart way to help protect these assets. It's comforting knowing that if something happens - like your tenants causing damage or a fire breaking out at the property - you're covered.

Here we break down what you need to know about landlord's house insurance and why it's essential for landlords.

House vs landlord insurance: what's the difference?

While Tower's house insurance and landlord insurance policies have some similar benefits, a landlord policy has key differences that are specific to tenanted properties and the risks associated with them.

These benefits include (but are not limited to):

• Loss of rent - Rest easy knowing that if disaster strikes and your tenants must leave the house, landlord insurance covers up to eight months' rent. This applies if your house is made uninhabitable by loss or damage covered under the policy while tenanted.
• Landlord’s whiteware and window covering - At Tower, we'll cover up to $20,000 for your rental property's whiteware and window coverings. It means you won't need to take out a separate contents policy for any appliances or curtains you provide your tenants.
• Methamphetamine decontamination - We’ll cover repair costs up to $30,000 if contamination damage occurs to your house arising from the manufacture, storage, consumption, use, or distribution of methamphetamine
• Deliberate damage - We’ll pay up to $20,000 for deliberate damage to your property, caused by your tenants or their guests, during the period of insurance.

For all of these benefits, please read the policy wording and certificate of insurance to understand the terms, conditions, excesses, limits and exclusions that may apply.

Your tenants' belongings aren't covered

While Tower's landlord insurance does have a whiteware and window coverings benefit, it doesn't cover any other furnishings in the house. Your tenants will need to take out their own renter's contents insurance to cover their personal belongings.

If your tenants don't already have insurance, it's a good idea to remind them to take out a renter's contents policy. Share this blog with them for more information.

Landlord insurance may be tax deductible

If you rent your property out to others, you may be able to claim tax deductible expenses that you incur, including your landlord insurance payments.¹

For more information on what you can and can't claim as a tax deductible, check out Inland Revenue or have a chat with your accountant.

Landlord responsibilities to tenants

There are certain legal responsibilities and obligations that landlords must adhere to when renting out their house, such as sharing their insurance information with their tenants². Learn more about your responsibilities as a landlord.

No longer renting it out?

It's important to let us know if you decide to change the use or purpose of the property, as it may not be covered under a landlord policy. For example, taking it off the rental market, using it as an Airbnb, or if you decide to use it as your own holiday home.

It's easy to get covered

Ready to insure your rental property? Get a quick quote online. If you need to update your existing cover, you can do this online in My Tower.

Taking steps to help protect your property with landlord insurance is a good investment. Get sorted now so you're ready for whatever tomorrow brings.

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