First IP need help with insurance

Viewing 4 posts - 1 through 4 (of 4 total)

smartcube
Member
@smartcube
Join Date: 2010
Post Count: 29
November 8, 2012 - 10:49 am
Hi All,
have recently purchased an investment pro in victoria/melbourne. i would like to get insurance cover for this ip. would like your valuable thoughts/exp/recommendations on the below
1.what kind of insurance should i be looking at
2.how much would it cost me
3. is this tax claimabke?
4.who do u have insurance with and recommendations
5.when should the insurance be taken
6. what insurance do i need to start with or need as a must (ex:Income Protection Insurance (IPI) and Life Insurance (LI),rental income,property damage etc)
7.
some info on the propery
its 15 years old and currenly vaccant going through inspections.
thanks
smartcube
smartcube
Member
@smartcube
Join Date: 2010
Post Count: 29
November 8, 2012 - 10:54 am

sapphire101
Participant
@sapphire101
Join Date: 2006
Post Count: 203
November 10, 2012 - 1:03 am
You should have insurance cover from the moment you sign the contact and during the settlement time up until it settles, at least for building just in case the place burns down and the vendor has no insurance or not enough insurance to replace.
An IP needs building insurance & content for things like carpet, curtains, stove etc
An investor renting this place out should consider landlord protection insurance.
A self employed person should consider income protection insurance regardless of property investing.
Most of your questions can be answered by insurance brokers so try ringing a few.
Hope that helps
Ian
Block Head | http://www.theblockblog.com.au
Free Property Investing Info, Tools & Resources For Investors With A Sense Of Humour & More…..
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
November 10, 2012 - 3:49 am
1.what kind of insurance should i be looking at
- If the property is a house then you will need building and contents insurance. If the property is strata titled then building may be covered, depending on the strata type, I would also add landlords coverage to your insurance policy.
2.how much would it cost me
- Landlords is about $240 ish depending on who you are with, excess levels and so on. Building insurance will vary according to the value of the property, location, construction and so on. Too many variables to give indicative costings.
3. is this tax claimabke?
- Yes.
4.who do u have insurance with and recommendations
- There a number of insurance companies around. Unfortunately you only find out how good they are when it is time to make a claim.
5.when should the insurance be taken
- From exchange or when contract is unconditional depending upon which state you are in.
6. what insurance do i need to start with or need as a must (ex:Income Protection Insurance (IPI) and Life Insurance (LI),rental income,property damage etc)
- Depending upon your situation you may find IPI and/or LI of value. You'll need to assess your personal situation to determine whether or not these forms of insurance are of value to you. While doing this make sure you run a stress test over your situation if you were killed, severely injured and could not earn an income.