I find it strange that there are so many ‘disaster’ stories about tenants.
I am looking to purchase my 1st IP and building and Landlords insurance combined will be around $300.
This covers up to 1yr in unpaid rent, damage to property, and rent if the property must be vacant during repairs.
I understand that it can be a major headache but there should be no financial cost for having bad tenants.
AM I BEING TO NAIVE?????? Please let me know if I am. The way I read the insurance policies, if a tenant punches a hole through a wall, the insurance will cover the repair cost and the rent while finding new tenants.
Simon
Hi Simon
you are right a proper “landlord” Insurance policy like yours is a neccessity. The cost is very small when you consider the benifits, not to mention the peace of mind. I had Landlord insurance on all my Aussie properties. On one occasion i had a tenant in a property in Tas, who damaged the heater and the insurance paid for a $2,500 heater and repaint and repairs inside the home another $4,000. I had the home on the market, after the repair work i sold it for $10,000 more than it was first listed at.
I wanted that tenant to live in all my homes ![biggrin]One issue was that took every bit of damage as a seperate incident so i paid about $700 excess, (it had $100 excess on each claim) they said there were 7 sererate incidents. I didn’t complain i was miles ahead.
regards westan
Break into the foreclosure market in the USA or Cash Positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
AM I BEING TO NAIVE?????? Please let me know if I am. The way I read the insurance policies, if a tenant punches a hole through a wall, the insurance will cover the repair cost and the rent while finding new tenants.Hi Simon,
Remember most of these policies require that the property is uninhabitable before they will pay out for loss of rent. I don’t think a hole in the wall would qualify.
The excesses on my current policies are $500 and $250 and as Westan said each incident will require a new excess.
Also if your property manager fails to do the proper inspection or issues a wrongly dated arears notice the insurance company wont pay you a pinch.
So my opinion of these policies is that they are an essential part of the risk management of your portfolio. They do not replace good management, tnenat selection and proper maintenance.
Good luck with the investing.
I Agree,
Landlords insurance, is an essential part of the risk management of your portfolio.Regards
http://www.owner.com.au
http://www.owner.com.au/phototour/listing_phototour.cfm?listingid=22315Hi Simon,
Ask lots of questions some policys are dodgy. We had tennants kick in 4 doors, take 2 sliding doors off their tracks, broke the shower screen, and the oven. Our landlord insurence did cover it as promised, but there was a “seperate” $500 excess for each door and each thing claimed. It dosent even cost $500 to get a new door! Even though they would cover everything, the numbers just didnt add up. It cost us less not to claim.
Alot of people hate lawyers, I hate insurance companies.[angry2][angry2][angry2][angry2][angry2]
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
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phone 0412 437 582Hi Guys
maybe we should list those who offer the best Land lord insurance policy. looking at the deals around there is quite a diversity.
as far as rent while unlet, my policy which i’d claimed successfully on, paid out if a tenant left when the property had a lease in place, it also covered the time till a new tenant was found, which allowed for repairs to be done. I’m talking back in 2003 so things may have changed. My policy only cost $150 per year on top of the building insurance and i was well ahead of that on what it had paid out.
regards westan
Break into the foreclosure market in the USA or Cash Positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
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