I don’t know if this has been asked before.
What sort of insurances do I need for rental properties. I know I have to get a home building insurance and a “landlord” insurance. Isn’t there an insurance that will cover both?
Any other advice is greatly appreciated. Thanks.
Arnaldo
Hi,
I believe many landlord insurances will cover both, try CGU, they might not the the cheapest
Hi,
Insurances over a property investment include:
1. Mortgage insurance- payable depending how much yuo borrow. Paid once at the start of the loan.
2. House- covers the building from fire etc.
3. Contents- if you are providing furnishings then you might like to have them covered. Might also like to consider insuring glass breakage, accidential damage from leaking washing machine / dishwasher etc.
4. Landlord- usually covers you in the event of tenant damage or if your income stream dries up (for a limited period of time). Personally I don’t have this as I believe that it is an avoidable cost if you properly qualify your tenants and have a good rental manager.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Greetings Arnaldo
When you insure the house it should cover you for Public Liability.
As Steve says about landlord insurance it can be an avoidable cost.It will add another $200 expence p/a. We send all our tenants Xmas cards and that seems to help as well as making sure your properties are inspected every 6 months and a condition report is written up.Make sure any problems that the tenants have with the property are quickly followed up , which keeps them happy and can also be an opportunity to check out the property.Self insure youself by having access to funds should it ever be required
Cheers
Rob“A bank is a place where where they lend you an umbrella in fair weather and ask for it back when it begins to rain
Hi All
( MY )experience with Landlords Insurance is that it is not worth the paper it is written on. I have had the tennant from Hell!, but the insurance company viewed it as Poor Housekeeping. > Stubbing cig buts out in new carpet, oil and grease from motors inside the house, chopping up directly on New Kitchen benches etc etc. Long story. But the end of it was, unless I took out criminal action and court action which would end up more then the cost of damages in the long run (solicitors!) the Insurance company would not look at it. I don’t bother any more with Landlords Insurance. ( to end on a bright note after I fixed the house up again , that house has had wonderful permanent tennants in it now for over 2 years).
Cheers IsagoldWell, I’ve seen the opposite side of landlords insurance – despite having good managers and good quality tenants, I’ve had 3 claims all due to unforseen circumstances. These include someone losing a job, a couple splitting up, someone needing to move back to the country for an ill parent.
I don’t think any property manager could have prevented any of these by better choice of tenants!! Okay, each time I was only a couple of thousand out of pocket by the time you added in some back rent and lost rental while the places were cleaned up and then rented again. If we’d had some warning we probably could have got tenants in quicker, but it took a few weeks each time.
Personally, when I look at how much money I’ve received back in payouts compared to the $250 a year per property, I’m so far ahead it isn’t funny.
Mind you, my main concern is to make sure that the building is covered, and I have excellent pubilc liability insurance. They’re the sorts of payouts that would need a very deep bank account to cover. Gaps in rental income should only ever be small and can be prepared for, but those bigger claims like Public Liability can cause massive financial pain, particularly when you’re starting out.Keep smiling
Felicity
Edited by – [email protected] on 31/01/2003 09:25:07 AM
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