The benefits of investing in property have led to an increase in the number of investors in the market. The asset can appreciate over time, rental income aids in repayments and there are a number of associated taxation benefits. Like anything, with pro’s there are con’s. The letting process involves a certain level of risk and finding a good tenant can be difficult. To avoid these risks coming to fruition, Landlord’s insurance is one of the most important purchases a property investor can make. A nominal outlay ensures coverage for not only damage to buildings and contents, but also for rental default and damage by tenants.
Whilst an ideal tenant would look after your property as you would your own, unfortunately not all tenants do. Reference checks by real estate agents are not always fail-safe. Accidents are sometimes unavoidable, yet there are also many distressing stories where a landlord’s property has been neglected and damaged by careless tenants. Circumstances such as these can run into thousands of dollars and without the right cover means you having to foot the bill.
But don’t just automatically go for the cheapest deals you can find. Renting out your property to strangers can be a risky business, and you want to be properly covered if something goes wrong. The key with buying insurance is making sure that you have adequate coverage for your situation. The cost of landlord insurance can vary with cover and service differing per policy.
Key areas of cover to review include:
- Acts of nature, such as floods, bushfires, hail storms, etc.
- Rent default – an element often overlooked and sometimes excluded from a policy, situations can arise from examples such as:
- The tenant refuses to pay due to a dispute
- The tenant is evicted by a court order
- The tenants obtain a hardship order
- Unexpected death of the tenant
- Contents that can be damaged such as carpets, furniture, curtains, etc.
- Building cover protecting items such as pipes, cables, fixed fittings, gas or plumbing systems, external fixtures, etc.
That is clearly a lot of insurance. But don’t panic, it isn’t that expensive and at Insurance Brokers Australia we have a policy that bundles them together into the same policy, making it easier to manage and cheaper for you.
As a member of Steadfast, Australia’s largest brokerage network, Insurance Brokers Australia is able to guide you through the small print to help you find the best possible policy for your individual circumstances. We do the homework for you, finding the most suitable coverage for you at a competitive rate. In the event you need to use the policy, we can also help with the claims procedure.
Investing in property can be a positive financial opportunity, though it can also have the opposite effect if not protected adequately. Having an experienced insurance broker to guide you ensures your investments are covered at the level right for you.
Call us today and let us look after what’s important to you.
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