InvestingAs a home owner, landlord or looking to buy a property, somewhere along the way, you may have asked yourself, what insurance cover do I need for my property or investment.
Below is a summary of the common insurance used for property:
Public Liability insurance Owners are required to have a minimum of $10 million public liability insurance and this is usually covered under your building insurance. This insurance also covers the owner from personal injury claims from tenants and visiting guests.
Building Insurance This policy covers structural damage to your home such as walls, roof, floors, fixtures and fittings. If you have a mortgage on your property, the lender will ensure you have insurance to safeguard against things like, fire, damages, storm etc,
Contents Insurance This policy covers your personal belonging, or items that are not considered to be fixtures and fittings. If you are renting your property to a tenant and have provided items for tenants use, it would be your policy that would cover those items. Items belonging to the tenant would require a separate policy arranged and paid for by the tenant.
Landlord Insurance This is an optional, but important, insurance that will protect you if tenants default in rent or damage the home. Some insurers also cover loss of rental income(between tenants). Tenants generally respect investment properties however it’s better to be safe then sorry.
There are some companies that specialise in Landlord insurance and they may offer a more extensive policy. A key consideration when choosing a policy is exactly what it will cover – taking time to find this out should ensure it will meet all your requirements.
Policies may differ from insurance companies, so it is wise to double check what is included in your cover for your own peace of mind.
The truth is Insurance is a safety net, whether you are a home owner or a landlord and always good for when unexpected events happen.