Question & Answer - July 2012
I have a rental property with good tenants. What insurance am I likely to need?
Two experienced property managers respond...
Answer: All investment properties should have landlord and building insurance regardless if you have a good tenant at the time or not.
Unfortunately people’s lifestyles can change in an instance either by breakup of relationships, death of a partner or loss of work, and this could mean that your great paying tenant is no longer able to afford the rent and the need to make a loss of rent claim may be imminent.
The best advise we can give all landlords is be prepared for everything and remember to discuss with your tax accountant on claiming back the costs of been a careful and well prepared owner.
For the small cost of approximately one week’s rent, it is a small price to pay for peace of mind.
Answer: It is important that all investment properties obtain suitable protection, and in addition to building insurance, we highly recommend a quality Landlord Insurance policy to protect owners from loss of rent, malicious damage and public liability.
Also, should your property have solar panels, we also suggest you check that your building policy covers these of type extras, as you may need a separate policy or addendum to your current policy to protect you from any damage to the panels, or damage which could initiate from the panels or their installation.