Owning an investment property is part of the great Australian dream. For most, purchasing such an asset can mean taking a financial risk, but it can be a risk worth taking to help secure you and your family’s financial future.
Landlord Insurance is not mandatory, but it is wise, so no landlord ever gets caught short. At the very least, all Landlords should have Legal Liability cover on their investment property. There are several key features to look out for in Landlord Insurance policies -
- Rent Default – This is important to ensure you maintain the income on your property. It protects against any unforeseen situations that may impact your tenant’s ability to pay the rent. There should be no excesses on this part of a policy.
- Damage – Look for policies that include Accidental, Malicious and Deliberate damage, as this means a broader level of cover against the potential damage to the property.
- Loss of Rent – If there is damage to your property and there is extensive work required to repair the property, it is again important to protect the potential income your property would generate. Loss of rent should include cover for 1 – 2 years depending on the event that has impacted the property. Good policies will have no excesses under this benefit.
- Unique/Special Features – It’s always great to get additional benefits in your policy that are unique to investment properties, this could include but not limited to - Pet Damage, Drug Lab clean up, Legal expenses, Scorching, new for old replacement and more.
Specialised Landlord Insurance providers will have a better level of cover than your “general insurers” and bank policies. Consider reassessing your current policy if the level of cover is inadequate or conditions are too limiting; A more appropriate policy is out there for you. By spending as little as $315 (tax-deductible), landlords may save thousands of dollars in the future.
If you would like advice or a comparison, you can contact ‘CoverWise’ on 1800 875 375 or simply let us know and First National On The Coast can organise to place cover for you.