Landlord Property Insurance. What is it and have you got enough?
Landlord property insurance is extremely important and very prudent to carry when you are a landlord. Simply, this insurance protects your investment! It lets you sleep at night.
It is extra to standard Home and Contents insurance which normally covers events such as fire, storm, earthquake and burglary for your residential home only.
Very few Home and Contents insurance policies cover malicious damage or theft caused by tenants, or loss of rent if a tenant defaults.
With the correct policy in place, you automatically take the stress out of owning investment property. You can relax knowing that if any damage is caused to the property you will be adequately insured from the financial consequences.
Like any insurance policy you take out, it will cover different things for different premiums and there a many different add on's which you can have to protect you as a landlord.
However in general, it will cover you against insurable losses like:
*Damage to the building caused by malicious damage by your tenant
*Theft of any part of the building or its fixtures and fittings by tenants
*Loss of rent if your tenant defaults in payment
*Denial of access to yourself or your tenant
Different property titles such as strata, group, or community title properties will attract different or additional benefits and should include legal liability cover of 10 to 20million dollars.
What factors influence the cost of the premium for landlord property insurance?
Obviously this varies between insurers as per any policy, but the the cost of premiums will be based on...
*Where your property is located
*How much you insure the building, its contents or loss of rent for
*If you have made any previous claims
*The age, type and construction material of your property
Whether you have locks and grills to doors and windows
Don't forget to ask about clean up cost should your property be burnt to an irreparable state.
Cart away costs in many premiums are not included unless you state that you want to be covered for this.
In the end you cannot or should not try to save money by not taking out insurance. It is false economy and not forgetting that it is a taxable expense.
REMINDER: Always view, read and understand the Product Disclosure Statement of the policy for the full terms, conditions and exclusions which apply to a policy.
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