Janet and Ross bought an investment property in Sydney’s inner west. They relied on the rent from the property to help cover their mortgage repayments.
One year, they rented the property to some tenants who caused extensive damage to some of the walls, floor coverings and doors – and then left owing 12 weeks ‘ rent . Because the property needed repairs, Janet and Ross were unable to rent it out immediately. Fortunately, the couple had taken out Landlords ‘s insuranceand included the rent default option*. They successfully claimed on their insurance to cover their repair costs – and just as importantly, their missing rent.> This allowed them to make their mortgage repayments and repair the property quickly so they could get new tenants in.
*Rents Default is an option extra for landlord’s insurance and attracts and additional premium.