Property Investment News | Lease Insurance Cover

Fixed Term Lease Versus Periodic Lease – Insurance Coverage

Does the type of lease agreement impact insurance cover? Yes it can depending upon your insurer.

Most landlord insurance policies require a fixed-term lease to be in place at the time of the loss, so it is important that when we ask if you wish to renew your lease, that you understand your policy coverage if you elect not to renew. Rent loss for example, a policy may offer up to six week’s cover for rent default if a fixed term agreement is in place but limit the cover to the notice period (such as two weeks) if a periodic agreement exists.

To put it another way, if a tenant is on a periodic lease, most policies will only pay the actual rent loss and not the rent you could have charged for any further period.

Always read your PDS and seek clarification with your insurer to minimise any loss.

If you have any questions, or need clarification on any of the above, please contact Anna Marten, our Head of Property Management, on 9651 1666 or

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