Investment property insurance offers cover for your property against weather related damage and ensures that you receive a steady level of income. Landlord property insurance in an absolute necessity considering the cost and trying to save a few dollars by not having adequate coverage is a bad decision.
The best insurance will cover you and your investment for property damage, loss of income and any liabilities. With these three basics covered, you can then look at any additional coverage that you may need, such as natural disaster insurance and content insurance. Let’s take a closer look at investment property insurance and highlight some of the key issues.
Vacancy Security:
Over time, the markets fluctuate, it may be the case that your investment property holds vacancy. However, if the markets turn bad and there is no vacancy you will suffer financial losses. Landlord insurance can ensure that the financial blow is less severe and your losses will be softened.
Tenants Causing Malicious Damage:
This is probably the main reason for seeking out investment property insurance. Some investors may be unaware that malicious damage covers repairing destructive damage and the replacement of stolen items. This insurance gives you valuable assistance in getting your property back into a rentable state as quickly as possible to minimise losses.
Personal Property Protection:
Many investors, rent out their property bare and others include furnishings, such as light fixtures, curtains, carpets, furniture and even appliances. It’s important to protect these items from deliberate and accidental damage. This can easily be included if personal property coverage is added to your insurance policy.
Flood Insurance:
An environmental flood can cause a lot of damage to your investment properties. If the location of your property is prone to flooding, this insurance is essential and hurricane induced floods are usually covered as well. This type of insurance covers natural flooding and floods that are caused by external factors, such as burst pipes and water leaks.
Builder’s Risk Insurance:
Investors that carry out a lot of renovations and reconstruction need builder’s risk insurance. This will provide coverage for contractor injuries, vandalism, and property damage. It’s also prudent, to add workers compensation insurance for added coverage related to work related injuries. If you flip properties on a regular basis or you want to increase the value of your investment by upgrading the property, you will need this additional coverage.
If they are looking for investment property insurance, Australia based investors should contact us. At GSK Insurance, we are experienced in all kinds of insurance, including investment property insurance. Perth landlords and investors have successfully used our services to mitigate risk and protect their investment. Our team is standing by to discuss your needs in greater detail and answer any other questions you may have.
