How landlord protection insurance keeps you covered
If you’ve had the foresight to invest in your future via property, congratulations!
As a landlord, you’ll need the protection of quality insurance to reduce the risk of being forced to sell if something goes wrong – and to give you peace of mind. There are different types of insurance to consider.
Building insurance covers the physical fabric of the property against risks such as fire, enabling you to rebuild. Contents insurance provides cover for items such as light fittings, curtains and cabinetry. And landlord protection insurance covers risks relating to tenancies, such as tenants defaulting on the rent.
These policies can be purchased separately or as part of a combined policy and are generally tax deductible for rental properties.
However the most important investment you can make when it comes to insurance is your time – there are sub-standard policies on the market which do not live up to their glossy brochures. By taking the time to read the policy, you’ll be better able to compare policies on the extent of their cover – their value for money – not just their price.
There are many myths when it comes to landlord protection insurance.
Some people mistakenly believe that the body corporate or strata’s insurance covers their investment – actually, it only covers common areas, not anything within the four walls of your property.
Others are under the happy illusion that they don’t need insurance because they use the services of a professional property manager. While professionally managed properties are less likely to experience problems than those where the landlord manages the property themselves, accidents can and do happen to even the most carefully selected tenants.
Wealthy investors sometimes don’t take out landlord protection insurance on the basis that they can afford the mortgage even if there’s no rent coming in – however they are less likely to be able to afford the hundreds of thousands or even millions of dollars that might be at stake in the event of a lawsuit.
For only a few hundred dollars a year, you can buy quality landlord protection insurance that could potentially pay for itself many times over in the event of a claim.
If you’d like to obtain a landlord insurance quote online, check out www.rentcover.com.au
The above advice is general advice and has not taken into account your personal circumstances, be sure to read the appropriate Product Disclosure Statement to ensure the policy meets your individual circumstances.