Insurance cover for renting out SOME rooms to housemates - PPOR

Discussion in 'Property Management' started by filipe, 17th Jan, 2020.

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  1. filipe

    filipe Well-Known Member

    3rd Oct, 2016
    I'm living in my 3 bedroom house and now going to rent out 1 or 2 bedrooms to housemates. It is a single free standing house and the kitchen, lounge, bathroom, laundry will be shared.

    I tried EBM, Terri Scheer, none of them cover if the landlord is living in the property.

    Most likely it won't be a proper residential lease but instead a written contract. I will be doing everything above board with rent/income declaring.

    Is such a cover available that I am covered if the housemates:
    1. stole my lounge (it cost me $10k!) or trashed the entire place.
    2. accidentally burned the house down falling asleep with a candle
    3. left the door unlocked and someone robbed us

    Should I even be worried about these type of things or if I take care in choosing a reputable decent trustworthy person, its unnecessary to worry... I just feel like the house build value is ~500k that I'd be screwed if it was destroyed and not covered, or I got totally robbed! I'm currently with Budget Direct, but I believe their optional tenant malicious damage is only $10k limit.

    I don't need any 'income proteciton' of the rent/down time.

    Thanks :)
    Michael Mitchell likes this.
  2. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    17th Sep, 2018
    As you've found out, typical landlord insurance doesn't cover renting rooms out in your PPOR. There are some providers out there I think just don't know what the type of insurance is called. I don't know about other states but in QLD there are specific rooming accommodation forms and rules under the tenancy act - best to see if there is similar for your state to maximize protections and ensure you're not contracting outside the Act and leave yourself exposed from invalid agreements etc.