As a property investor/owner, safeguarding your investment is crucial. Insurance plays a vital role in protecting your property against unforeseen events and ensuring your financial security. In this article, we will delve into three essential topics for property investors: the importance of including contents insurance with landlords insurance, the advantages of bundling all your insurance policies into one place, and the availability and workings of loss of income/loss of rent cover post-COVID.
First Class Insurance Solutions
In situations such as body corporate arrangements or when renting out furnished properties, it’s essential to consider the value of your contents within the property. While landlords insurance primarily covers the building structure, fixtures, and fittings, it often doesn’t extend to the contents within the property. Your new unit doesn’t have to be furnished for you to have contents cover either. Here’s why obtaining a bit of contents insurance alongside your landlords insurance can be beneficial regardless of your unit being furnished or not:
Comprehensive Protection for Fixtures and Fittings
Contents insurance provides coverage for essential components of the property, including carpets, curtains, appliances, and other fixtures and fittings. It will also cover you for any fixtures and fittings that have been installed by you as the property owner of a strata titled unit that is not covered by the body corporate. These items are vulnerable to damage from accidents, natural disasters, or tenant-related incidents. By including contents insurance, you ensure that these valuable assets are protected against potential loss or damage.
Body Corporate Situations
In scenarios where multiple units or apartments are part of a body corporate, the shared areas and assets may be covered by the body corporate’s insurance policy. However, this coverage typically does not extend to the contents within individual units. Having a separate contents insurance policy ensures that your personal possessions are adequately protected.
Contents insurance can also offer protection against potential damages caused by tenants. While landlords insurance may cover structural damage caused by tenants, it may not include damage to the contents. Contents insurance provides an extra layer of security, minimising your exposure to financial risk.
The Benefits of Building Insurance Policies
Managing multiple insurance policies from different providers can be time-consuming and confusing. Bundling all your insurance policies into one place has several advantages that property investors should consider:
Consolidating your insurance policies into one place means dealing with a single point of contact, streamlining administrative tasks. It reduces the complexity of managing multiple policies and ensures efficient communication and coordination.
Potential Cost Savings:
Many insurance providers offer discounts or reduced premiums when you bundle multiple policies together. By combining your landlords insurance, contents insurance, and other relevant coverages (such as motor insurance or professional liability insurance) with the same provider, you may be eligible for cost savings.
Bundling your insurance policies allows you to customise coverage options to suit your unique needs. With one insurer, you can ensure that your policies are aligned, eliminating potential gaps in coverage and providing comprehensive protection for your property investments.
Landlords Insurance, Loss of Income/Loss of Rent Post-COVID:
The COVID-19 pandemic brought significant challenges to the rental market, with many tenants facing financial hardships and landlords experiencing reduced rental income. Here’s an overview of the availability and workings of loss of income/loss of rent cover post-COVID:
Evolving Coverage Options:
Loss of income/loss of rent cover continues to be available post-COVID; however, insurers have adjusted their policies to adapt to the changing landscape. It’s important to review the terms and conditions of the policy to understand the coverage limits, waiting periods, and exclusions that may apply.
Insurers may require proof of financial hardship for tenants, such as job loss or business closure, to activate loss of income/loss of rent coverage. Additionally, certain policies may impose a waiting period before coverage begins, usually ranging from 30 to 90 days.
Mitigating Financial Risk:
Loss of income/loss of rent cover provides peace.
Any advice about the insurance products described, is general advice and has been prepared without taking into account anyone’s objectives, financial situation or needs.