What am I covered for?
Landlord Insurance can cover your investment property building and/or contents against loss or damage as a result of insured events such as theft or vandalism, floods, fires and storms to mention a few. Landlord Insurance can include building, contents or combined building and contents cover.
Building cover provides cover for the building and structures not under strata title, outdoor items such as fixed water tanks, barbecues and solar panels, and indoor items like walls, ceilings and floors. It can also provide cover for fixtures and fittings such as carpets, curtains and blinds. Contents cover for landlords can cover things like electrical appliances, your furniture and furnishings within the property, lawn and garden equipment and unfixed swimming pools.
Landlord Insurance also provides cover for many of the specific risks that come with renting out your property to a tenant. This includes cover for accidental or malicious damage caused by the tenant, rent default and loss of rent due to the property being impacted by an insured event.
For a full list of the insured events and coverages, as well as terms, conditions and any applicable limits please refer to our Product Disclosure Statement.
Does Honey Insurance cover me for flooding?
We do. Our Product Disclosure Statement defines a flood as: The covering of normally dry land by water that has escaped or been released from the normal confines of any of the following: a lake, river, creek or other natural watercourse (whether or not it has been altered or modified) a reservoir, canal or dam. Please refer to the PDS as certain conditions and exclusions apply.
What am I not covered for?
For a full list of exclusions under your policy, please refer to the Product Disclosure Statement.
Am I covered immediately?
You’re covered from the date you requested your cover to start. However, if you don’t have existing insurance, we can’t cover you for flood, water runoff, bushfire, storm surge or storm damage for 72 hours.
What is ‘new-for-old’ replacement?
Honey Landlord Insurance provides new-for-old replacement on your belongings. This means that your possessions will be replaced with brand new items should something happen to them. Because they wear and tear, unfortunately, carpets over 10 years old are not covered with new for old.
How much should I insure my investment property for?
We aren’t able to provide you with advice on the replacement costs of your investment property or how much to insure it for. Instead, we use the information you give us and data sourced from third parties to suggest an amount of cover you could have. You could use this suggestion as a guide.
When considering how much you should insure your investment property for – often referred to as the sum insured – you should include the full cost to rebuild your investment property, including the cost of structural improvements on the property. But don’t include land value. Our policies include an allowance for demolition and site clearance, as well as professional fees for the design of your replacement home. You should also consider increased building costs to meet any relevant local council building requirements. If you are unsure of the replacement cost, a builder or architect may be able to assist you.
We recommend that you use a property building calculator to determine independently an appropriate sum insured for your needs, which you can then compare to the guide provided by us during your quote. Keep in mind that policies receive 5% of the building sum insured for fixtures and fittings, except strata title.
Can I get landlord building insurance if my property is under strata title?
Normally, we can’t insure the building of an investment property under strata title. They’re insured under a body corporate. We do offer contents insurance to cover any fittings and fixtures that aren’t covered as part of the strata insurance. If you are unsure, give us a call on 137 137. Our team will be happy to chat things through with you.
Am I covered if my tenant defaults on their rent payments?
If you take out a Landlord insurance policy with Honey, when your tenant is in default, we may pay the net rental income up to $5K minus bond entitlement. If your building is damaged to an extent that the tenant can’t live in it, or access to use your building is not possible due to damage to the property or strata title development, we may pay for loss of rent on the insured property for the time it is unoccupied. This benefit is automatically included in your policy and subject to terms and conditions in the Product Disclosure Statement.
Am I covered if my property becomes unoccupied?
Your property can continue to be covered under a Honey Landlord policy against insured events even if it becomes unoccupied. You may be required to pay an additional excess if something happens, but you can rest easy knowing the property is covered.
We consider your rental property unoccupied if no one has been living in it for more than 60 consecutive days or if someone stays there on average for less than one night a week during the 60 day period.
Am I covered if I’m renovating?
Until the roof, floor and external walls are in place, we don’t cover loss or damage to your rental property (and building materials) or your contents caused by events detailed in the Product Disclosure Statement.
Is Landlord Insurance tax deductible?
In some cases, yes. Be sure to check with your tax adviser to find out whether you can claim a tax deduction for your Landlord Insurance costs.
If your investment property is leased as a rental property, you may be able to claim Landlord Insurance costs for your rental property for the period it was tenanted or available for rent.
Am I covered if my rental property becomes untenantable because of storm damage?
Yes. When your property is being repaired after an insured event such as flood, fire, or storm damage, and your tenant can’t live at the property our Landlord insurance policy will pay the net rental income up to 10% of your sum insured, up to 12 months from the insured event.
Am I covered without a lease agreement?
We cannot cover you without a lease agreement. You must have a rental agreement between you and the tenant, and we require that you have it managed by a licensed property manager.
Will Honey cover my holiday rental?
Right now, we are unable to cover homes rented for short-term holiday purposes (less than 3 months) with our Landlord insurance. However, you may be able to find a suitable home or contents policy for your holiday rental on the Insurance Council of Australia website, Find an Insurer.
What’s the difference between a short-term and long-term rental?
A long-term rental is a formal lease where the entire property is rented out as a residence for a minimum period of 3 months. A short-term rental (if you allow guests to accommodate your property registered with a provider like Airbnb) is where you rent the entire property to paying guests for short-term holiday purposes. This rental period under a casual let must be less than 3 months.
Can I choose my own repairer for my property repairs?
We have a specialist panel of repairers who help our customers nationally and are able to safely assess, repair or rebuild your home. As part of this process, we’ll share all information openly with you and, where you’d like to discuss an alternative action such as choosing a different repairer or being paid a fair and reasonable amount for the repairs, our Claims team will gladly support that.
Can I get smart home sensors with Landlord Insurance?
At this time, we do not offer smart home sensors with our Landlord Insurance policy. However, we’ll be sure to update all policyholders if this changes.
Does Honey offer Motor Burnout cover?
Motor Burnout is available as an optional benefit on building and contents insurance policies. By adding Motor Burnout cover you can be covered for loss or damage to the electric motors in your eligible electric appliances if they burn-out and stop working - provided they are less than 10 years old.
