Last month the need for Landlord Insurance was highlighted again with all the bush fires throughout the eastern side of Australia and the cyclone up north in Western Australia. Australia is a country that is prone to severe weather conditions and there is no getting away from it.
It would almost seem impossible that a property investor could get away with owning a property for a number of years and not have a claim for property damage of one sort or another.
I know I only wrote about this a few months ago but I just cannot stress enough how investors do need to have coverage, not only for the sake of repairing and getting their property up and earning again, but also because of the threat to their whole investment portfolio.
I know times have been tough and some investors have held on through the last couple of years and struggled to make ends meet, but believe me, Landlord Insurance is something that you must just have. If you do not and disaster strikes you will never forgive yourself. The pain of a damaged property is just not something you want to experience.
Even with Landlord Insurance the damage and pain is enough. Usually it means you have your personal income affected as you take time off to deal with the situation and the emotional effect is not good either.
Here is what you need to consider:
· Loss or damage – building – caused by tenants, families or invitees and natural disaster
· Loss or damage – contents – covers landlord owned household contents which you are responsible for, that you provide for the use of the tenants and would have to be replaced as soon as possible
· Loss of Rent – provides financial security so you still have income from your property to meet your expenses
· Legal liability – covers legal liability for damage to other people’s property, or death or bodily injury to other people
· Tax audit - pays professional fees in relation to a taxation audit in relation to your rental property
As mentioned above if you do have property problems so you may need to get income insurance to cover this as well.
Take care, be safe and make sure your tenants are safe.