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

    Joined:
    3rd Oct, 2016
    Posts:
    76
    Location:
    Sydney
    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

    Joined:
    17th Sep, 2018
    Posts:
    757
    Location:
    Brisbane
    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.