INSURANCE

What insurance do I need?

When it comes to insuring your investment property, there are a few different types of insurance to consider and it is important to determine the types of insurance that are applicable to you and your property. It is vital that you thoroughly check all policies to ensure all aspects of your property will be covered should the situation arise.

Landlord insurance

There are two major parts to landlord insurance cover. The first is contents, which includes the carpet, light fittings, blinds/curtains, appliances, etc. (not to be confused with the contents owned by the tenant, which they are responsible to cover if they so choose). The second major aspect of cover is for loss of rent. This provides owners with rental income up to a number of weeks. Loss of rent is payable to an owner in situations such as: when tenants stop paying the rent and are subsequently evicted from the property; when the tenants suddenly leave with no notice; or in the event the property is not tenantable (e.g. due to fire or flood).

Building insurance

A building insurance policy covers the outside of the property and generally it includes public liability for common areas, such as the driveway. Building insurance covers permanent fixtures such as the roof, walls, ceilings, floors, doors, windows and fitted kitchen and bathroom cupboards.

When it comes to strata complexes you may also need building insurance as many strata insurances include some of the fixed parts of your unit, but will not cover everything.

Strata insurance

Strata insurance generally covers common or shared property as defined on the title of the property. This might include common areas, lifts, pools, car parks, gardens, wiring, balconies, walls, windows, ceilings and floors (common only). Strata insurance must provide liability cover in the event people are injured on common property. You should check what is covered under your strata policy.

Contents insurance

Contents insurance is to be taken out by the tenant and is designed to protect their possessions from flood and fire damage, as well as theft (dependent on their chosen cover).

It is important to thoroughly check all policies to ensure all aspects of your property will be covered should any situation arise.

It is important to thoroughly check all policies to ensure all aspects of your property will be covered should any situation arise.