Hi all,
We have clients looking to follow the new aussie dream – full time property renovation. But we’re just trying to add a bit of boring-old insurance to the path of passion.
With ”normal” clients, income is looked after through Income Protection but given their lack of formal training, self employed status and no history of earnings in the field…this isn’t quite straight forward.
How do any FT Renovators approach this situation? Insuring yourselves against loss of income?
Also – Public Liability Insurance (and related cover) what’s needed and who would be a couple of good general insurance brokers in WA?
Know from personal experience how important personal insurance cover is so would like to try and find a few answers for them.
Thanks again [biggrin]
Hi propertywa
Do you mean buy, reno, sell or hire yourself out to do renos?
I buy, reno, sell. have a buisness structure and draw wages. I do not have income protection but have been thinking I may need it – because instead of having one at a time, I now have 4.
Since I draw wages, I should be able to get insurance – as far as I am aware a self employed person can get insurance. there is insurance for everything.
Public liability – that is in your building insurance – One thing I would stress is do not do anything you are not licenced to do ie electrics / plumbing / extensions, leave it to the experts. If there a future problems with these it’s their problem.
If you are hired to do anothers house, you would more than likely need to be registered as a builder. A whole different senario.
Celeste
I was going to get my insurance through Western QBE, but was advised to go through Terry Sheer Insurance Brokers to get it cheaper rather than going to QBE direct. It did work out cheaper for us to do it this way.
Remember to read the fine print and best of luck.
I can’t comment directly on the situation that you’re in, but my advice with any type of financial transaction is have a full set of audited financial statements bound and ready going back 3 years. Give this to the underwriter doing the insurance.
As a general comment on Income Protection insurance – if you’ve got a regular job and you’re thinking of quitting it and either doing full time property investing or any other type of self employed activity, it pays to take out an income protection policy BEFORE you quit your job. They will assess and price you on your current status. Keep your lip buttoned about your upcoming career. Whilst you may fall foul of the policy rules (read them carefully before committing), as long as you don’t change the ‘physical’ nature of your work (ie from office job to professional investor) they’ll probably let you keep your policy going. If you go from being office boy to building renovator running around on a roof with a powersaw, they’ll probably have something to say, like NO, or they may just double your premium.
I’ve changed from salaried employee to self employed, and kept my income protection insurance. I spoke to the insurance company, and while they didn’t jump through hoops about it, the policy stays. Basically I am still doing the same thing, just not in a big office anymore.
On another point for everyone else out there : WHAT? You DON’T HAVE IP insurance? Give yourself a slap. Property Investor or Full time worker. Think about it, you probably spend $500+ a year on insuring a vehicle worth maybe $10,000+, and you don’t spend a red cent on insuring an income probably worth $50,000 per year. Some policies will keep paying your income for every year that you can’t work. My IP policy is worth twice as much as my car (per year), and yet costs half as much per year. That to me is a bargain.
Don’t think your employer will make things right if you have a bad accident or get seriously ill. Once your sick leave is gone and you’ve used up your holiday pay, you’re on your own, buddy. Then who is going to pay the mortgage?
_____________________________
We all need somewhere to live – but do we all need a CBD apartment?Thank-you to all those posting opinions/thoughts,
To answer your question Celeste they are moving down the same path as you have – Buy, Reno, Sell.
The main client, husband, already has Income Protection up and running but we cant find a way to increase it given his new occupational duties. Insurance company happy to continue cover just not increase mthly benefit.
And dee dee – will pass on the broker for them to consider, thank.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
