Say, you have brought a property worth $420,000, you are currently paying a monthly repayment of $2100, should you really need to add up to this monthly cost and purchase a landlord insurance now?
The answer will be yes. Investing in a landlord insurance is always worthwhile if certain things go wrong unexpectedly. Your property is a valuable asset and it’s important to protect it. A landlord insurance gets you covered for any damage, caused by natural disasters or by the tenants with an outlay of a few hundred dollars a year.
The Things You Should Consider While Buying a Landlord Insurance
In Australia, the property owners can find different landlord insurances that give coverage for different situations and the price varies accordingly. Don’t expect any two insurance policies to give you exactly similar coverage. Read the Product Disclosure Statements carefully and decide whether you want to go with it or not.
Having said that there are some key features that any landlord insurance should cover. The damage of any property can be caused in two-way – it can either be caused by unexpected or natural disasters or by tenants and their invitees.Your Landlord Insurance should give you protection against damages caused by –
Your Landlord Insurance should give you protection against damages caused by –
• Storm and Flood
• Earthquake, Tsunami and ‘ocean movements’
• Civil unrest and rioting
• Burning out of household electrical machines
• Theft by third parties
• Burst of pipes and overflowing tanks
• Accidental glass breakage
• Legal expenses if you take action against a tenant
• Liability if a claim is made against you
• Deliberate damage or theft by tenant
• Absconding or Defaulting tenant
• Unexpected death of tenant
You have already invested thousands of bucks on buying your property now the last thing you need is to be lying awake at night worrying about protecting the property. Invest on a landlord policy that will pay out and give you the right kind of coverage. Don’t automatically assume you’ll be covered for all your needs and if, in doubt, it’s better to be overinsured than underinsured.
Landlord insurance is designed to cover you for any harm caused to your property by bad tenants or unexpected damages, but you will still be responsible for the regular maintenance of your property as a landlord.
To learn more visit https://www.sgua.com.au/