Insurance should be viewed as an absolute mandatory for investors, particularly for those living overseas.
For any property investor, insurance is a must, more importantly so for those living in a different country to their property. Granted you can always err on the safe side when looking for tenants, but there are no guarantees.
Why would you wait for something to happen before doing anything about it? Here are the top 3 reasons why you should definitely look at insuring your property.
A standard Home and Contents policy (which you can find with most insurance providers) is a start, but they don’t usually provide cover for two of the most significant risks facing landlords:
- Malicious or international damage by tenants; and
- Failure to pay rent.
Common features of a Landlord Insurance policy include:
- Malicious or intentional damage to the property by the tenant or their guests,
- Theft by the tenant or their guests,
- Loss of rent if the tenant defaults on their payments,
- Liability, including for a claim against you by the tenant, and
- Legal expenses incurred in taking action against a tenant
Reducing the cost.
Increasing your excess can often reduce the monthly cost you pay towards your insurance. But do remember – In the event you do need to claim, you’ll be paying more to make repairs or have possessions replaced.
There are also some discounts for paying your insurance annually instead of monthly, and reduced rates when you bundle your insurance with other types of insurance, like car or life. Check with your current insurance provider to get across your available options.
If you are looking for the right investment property, feel free to contact us now to speak to one of our Project Sales Managers today.