Insurance

Insurance is a vital ingredient for the owner of an investment property. There are three main types of insurance often used by property investors. They are building insurance, contents insurance and landlord insurance.

Building Insurance
It is recommended that owners of houses, flats, apartments, townhouses etc should be covered by home or building insurance at all times that they own the property.

Estimate the value of your Building
The best and most accurate way to be provided with a valuation on your home or investment property is to employee a professional valuer. Many insurers also have on-line calculators on their websites to assist making this calculation.

When you are valuing your property, remember to include external blinds, garages, carports, in-ground swimming pools, spas, fences and gates

Your insurance should also cover the removal of debris and the replacement of special features.

Ask your insurance broker if you need assistance in determining the value of your property.

Temporary Accommodation
Check whether your policy will cover temporary accommodation if your house has to be rebuilt. Check whether this is included in your policy and requires an additional fee.


Contents Insurance
It is important to ensure that your assets are insured. Contents insurance provides piece of mind if somet5hing was to happen to all your assets that you would be able to replace them.

Many owners are under insured when it comes to content insurance and do not fully appreciate the value of all their assets.

Estimate the value of your Contents
To purchase contents insurance, it is important to estimate the value of everything that you own and want to insure.

For more expensive or electronic items include details of serial numbers or identity marks.

It is a good idea to also take video or photos of expensive or unusual items and store the tape or photo in a safe place.

List down the value of each item in each room of your house. Estimate the value of each item and then add the value of all items together top work out how much contents insurance you should apply for.

For electronic equipment and whitegoods, check out at a local retail or appliance store or in magazines or brochures how much they would be to buy brand new. Use the replacement value to value these higher end items.

Be careful that some items may not be covered by contents insurance. These often include assets like coin and stamp collections, jewellery, paintings and some expensive items. Work with your insurance broker to ensure these items are covered as part of the contents insurance or whether they require to be individually identified and a further premium payable.

If you are in doubt at any time what is and isn’t covered, please contact your insurance provider.



Landlord Insurance
Listed below are the main categories of cover that distinguish a landlord policy from a household policy. It is important that you seek your own specific advice in regards to landlord insurance and use the items below as a guide only.

Loss of rent – This benefits the landlord in two situations. Firstly where the tenant leaves the property without paying rent up to the required notice period or the tenant is evicted. Secondly, you are covered for loss of rent where an insured event occurs and the property is damaged ‘to such an extent that the tenant cannot live in it’.

Malicious damage – This refers to damage to your property caused by tenants or others but not by you or your agents.

Legal costs – This refers to an amount to compensate a the landlord for legal expenses in chasing up unpaid rent or damages.

Theft – This cover provides protection if items from your property go missing, either taken by your tenant or their friends.

Legal liability – This protects you against legal liability for injury to tenants or their guests or their property. This may be an optional extension to your standard landlord policy.