At Hollie Joss We use Real Landlord Protection Insurance which is as close as we can get to a rental guarantee. You should be receiving rent on your property unless it is vacant due to tenants giving notice.
Landlord Protection Insurance is your key "risk management" tactic when owning Residential Investment Properties, but it is not fool proof. You cannot completely eliminate risk from this or any other investment strategy. Your single goal is to have your property managed – and minimize – your exposure to risk and hence potential losses. One of the key elements to the Landlord Preferred Policy that we recommend is the Loss of Rent cover. More than 97% of claims have been for loss of rent suffered by Landlords. And don't forget that often your building insurance may not cover the entire loss caused by Intentional Damage by the tenant and you need to have cover to complete your claim.
Landlords need insurance to cover damage
If you’re a landlord, make sure your insurance covers the property, and that the cover is for a rental property. The Residential Tenancies Act 1986 requires you to pay the premiums charged for that insurance.
Residential Tenancies Act 1986 (external link)(http://www.legislation.govt.nz/act/public/1986/0120/latest/DLM95084.html)
Talk to your insurance company about their requirements for making claims. Some insurers need landlords to prove they’ve completed a thorough tenancy selection process before honouring damage claims.
You may also choose to insure any chattels (such as furniture) that are listed in the tenancy agreement. Any damage to them won’t be covered by the tenant’s contents insurance.
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