We advocate that all property investors have a close look at taking up the option of Landlord/Investors Insurance, in addition to, the usual Building and Contents Insurance.
The standard Home and Contents Insurance policy does not necessarily cover many events that occur in rental properties. For example, loss of rent may only be payable due to damage by an insured risk (e.g. fire, storm damage, etc). There is often no cover for the tenant not paying the rent, broken leases, denial of access by the tenant, etc. Most policies usually exclude malicious damage caused by the tenant.
There are also many accidental damage possibilities not payable under normal household insurance but payable under a Landlord Insurance type product.
As property investors, we rely on the cash flow that rental income provides to assist in paying loan repayments, rates and other costs or even money to live off. As such, this income stream is of vital importance. Fortunately in today’s times we are able to take out insurance to protect this income and our property asset.
Insurance type products enable us to insure against a number of events including:
Damage and Theft (Building)
|Theft by tenant||Accidental Damage|
Damage and Theft (Contents)
Theft by Tenant
Loss of Rent due to:
Default of rent
|Departure without notice||Denial of Access|
|Breaking of the Lease||Malicious Damage|
|Theft by Tenant||Death of Tenant||Etc……..|
|Court Costs||Tribunal Costs||Recovery Costs|
|Sued for damages||Liable for Compensation|
We suggest you double-check your current policies and make sure you have adequate cover. Some policies have a “Landlord” component, but you might find that the cover is limited or has exceedingly high excess limits that result in large out of pocket costs to you.
If you have more than one property it may be possible to get a “bulk” discount…. hey!… …..there’s no harm in asking.
At Property Friends, we research the insurance companies and have just come up with a great “Team deal” for the Geraldton Purchasers – the value of the premium dropped by about $200!!! It always pays to do use the leverage of the Property Friends team, but remember, do your own research as companies and the cover they offer can vary significantly.
You’re welcome to give us a “yell” if you have a property in Geraldton with a need for insurance. As always no Kickback for us anywhere here 🙂 – we are paying the same as you 🙂
Property Friends is a specialist Property Investment Advocacy that has been operating for the last 13 years on the basis of 3 principles: Trust, Community & Progress. www.propertyfriends.com.au (03) 9758 5331
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