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LANDLORDS INSURANCE VERSES COURT – WHICH ONE SHOULD YOU CHOOSE WITH BRENDA HUNTER

Landlord Insurance vs. Going to Court: What Property Managers and Investors Need to Know

In the latest episode of the Property Management Podcast, insurance specialist Brenda Hunter from Property Insurance People (PIP) joins the conversation to unpack a critical question for landlords and property managers: Should you rely on landlord insurance, or take your chances in court when things go wrong?

It’s a conversation that cuts through the confusion and gets straight to the heart of risk management. Many landlords and even some property professionals underestimate the value of landlord insurance, mistakenly believing building insurance alone will cover tenant-related issues. Brenda shares real-world examples and expert advice to highlight why this mindset can lead to costly mistakes.

From debunking common myths to explaining the financial and emotional toll of court proceedings, this episode is packed with practical takeaways. If you want to protect your properties, reduce stress, and set your clients up for success, these insights are a must-hear.

Why Landlord Insurance Matters

One of the biggest takeaways? Landlord insurance isn’t a ‘nice-to-have’–it’s essential.

Too many landlords think their standard building insurance has them covered, but that’s rarely the case. Building insurance typically covers the structure against things like storms or fires, but it doesn’t touch on tenant-related risks like:

  • Loss of rent (up to 52 weeks if uninhabitable; up to 20 weeks for tenant default)

  • Damage to contents (think carpets, curtains, or provided appliances)

  • Legal liability (injuries on the property)

Landlord insurance gives you peace of mind–and often at a fixed cost with clear inclusions that are easy to budget for.

Common Mistakes That Leave Landlords Exposed

Brenda shared some of the most frequent (and costly) errors landlords make:

  • Thinking building insurance is enough: It’s not. You need both types of cover.

  • Skipping contents coverage: Items like dishwashers or standalone wardrobes may not be protected without it.

  • Waiting to get insured: Delaying until a tenant moves in can leave you wide open during open homes or inspections.

  • Avoiding claims out of fear: Many landlords don’t realise fixed-price landlord insurance policies often don’t increase after a claim.

Tips for a Smooth Claims Process

When claims are needed, preparation is everything. Some best practices include:

  • Act fast: Lodge as soon as the issue arises.

  • Document everything: Include the lease, tenant ledger, photos, and detailed damage reports.

  • Be specific: Use the term “tenant damage”–let the insurer categorise the type.

  • Submit online: Providers like PIP offer simple digital processes for fast turnarounds.

Staying Ahead with Proactive Maintenance

Some of the most common claims come from preventable issues. A prime example? Burst flexi hoses under sinks and appliances.

Include these in your routine inspection checklist and look for signs of rust, fraying, or wear. Other risks to watch include:

  • Fire hazards from faulty appliances or batteries

  • Damage caused by children or guests

  • Injuries that happen during inspections or open homes

A proactive approach reduces risk–and strengthens your insurance claims.

Why Insurance Is Better Than Court

Taking matters to court might sound appealing, especially when tenants do the wrong thing. But in most cases, insurance wins hands down:

  • Less stress and wasted time: Court is costly, draining, and often delivers no payout if tenants skip town.

  • Faster financial recovery: Insurance provides timely, reliable compensation.

  • Industry standard: Many agencies now require landlords to have insurance before managing a property.

“Property managers aren’t 24-hour security guards. Insurance is the only true protection against the unpredictable.”

Extra Advice for Property Professionals

Brenda’s closing wisdom extended beyond policies and premiums:

  • Educate your clients: Help them understand the difference between types of insurance and why both are necessary.

  • Check policy inclusions: Make sure loss of rent, liability, and contents are all covered.

  • Keep learning: Staying informed helps you better protect your landlords and their investments.

  • Work on your mindset: Communication and resilience are as important as any policy.

Insurance isn’t just a checkbox–it’s a key part of your property management strategy.

If you’re not already treating landlord insurance as non-negotiable, now’s the time to change that. Proactive inspections, clear documentation, and the right policy can save you–and your landlords–serious stress, time, and money.