An investment property is a costly thing, and it’s only natural that you should want to protect your hard-earned money. The best way to do this is with landlord insurance, which gives you the peace-of-mind that, if anything were to go wrong with your property, you would be well-protected.
It differs from traditional owner-occupier and renters insurance in that you’re not taking out a policy for the contents, but the structure of the home itself. This means you’re being covered for the real estate value, no matter who lives in the home.
What does the policy cover?
The number one thing to look out for when purchasing your policy is that it covers you in case of both accidental and purposeful incidents. Accidental events could be anything from fire, flood and storm, which can all cause damage to property. Purposeful events are anything caused by humans – theft, vandalism and loss of rent if the tenants fail to pay.
Look out for policies that would underinsure you for the value of your property.
Who should I talk to for help?
Insurance policies can be confusing and riddled with legal jargon. It’s important to get a second opinion before you sign on for a make-or-break policy. If you need to seek help, talk to a valuer or quantity surveyor, who can provide you expert information on your property and help you choose the right policy for you.
You could use one of the many online calculators that are out there, but for more peace-of-mind, turn to someone who knows what they’re doing.
How often should I review?
It’s a fact that houses change over time and the policy that suited your needs at the beginning might not suit you after renovations have taken place. Make an effort to review your policy every year and check that you’re insured for the right amount.
Just by following a few expert tips, following your common sense and reading your policy thoroughly, you’ll be well on your way to signing on the dotted line.