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4

January

2015

Remember the Landlord's Insurance

It is again that time of year when we need to remind all our investors of the importance of Landlord Insurance. This is always a difficult subject for a real estate office as we are not allowed to recommend any particular insurer. As you know, there are 2 types of insurance available to the property investor. One is building and contents which will cover damage to the building as well as the internal fittings such as carpets, curtains etc. This Insurance is a legal requirement for us to manage your property.

There are of course many insurance companies which offer this insurance, however, in light of recent events over the past few years, not all policies are the same. Flood and or water damage is still open for interpretation within the industry so I would urge you to check with your insurance company to make sure you are covered for what you think you are covered for. 

Some things to consider are,

  1. Water damage that is caused by a storm, i.e. tree through house or roof exposed and subsequent water damage
  2. Water damage from internal plumbing issues, i.e. burst flexible internal hose
  3. Flooding, which depending where your property is might be from a burst external water main or a stream or river. Remember the water back flowing from storm drains during the 2011 Brisbane floods! 

Secondly, there is Landlord's Insurance. Some policies for building and contents include a variant of landlords insurance within their policy. Recent experience within our office has shown many policies with this inclusion are really not worth having.

Again I would urge you to check your policy on this matter. Tenant's circumstances can change very rapidly in an economic climate that is still a little uncertain. Although we thoroughly vet our tenants, job losses, sickness, violence and even deaths in families can change a person's circumstances overnight.

The link below is for your perusal on this matter. We trust it is helpful with the responsibilities you have to protect your Investment. Flyer on Landlord's Insurance.

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