Do you have the right level of insurance cover for your investment property? Both under and over insurance can impact your finances, leaving you unnecessarily out of pocket. Under-insuring puts your investment property at risk; if is destroyed or damaged you won’t have enough money to cover the cost of rebuilding or repairing. Over-insuring means you are paying more in premiums than you need to, reducing funds that could be better spent or invested elsewhere.
The Insurance Council of Australia (ICA) commissioned Quantum Market Research to undertake a national survey of over 1,000 Australians in 2014 and found 83 per cent don’t have enough insurance cover to allow them to continue with the same standard of living.
Protect your investment property and the assets within it by understanding the different types of insurance and what they cover.
In this article we will look at:
Building insurance is designed to cover repair and replacement costs to the structure of your investment property from unexpected events such as accidental damage, fire, storms, earthquakes and floods.
It usually provides protection for areas including fences, gates, garages, sheds, pipes, cables, drains and solar panels. The potential financial risks for owners of investment properties without building insurance is high.
With one in 25 homeowners surveyed not having building insurance, ensure you’re protected with the right level of cover. With access to construction cost data and a range of insurers and policies, BMT Insurance can estimate the replacement cost of your property to help find you the most cost-effective insurance cover to meet your needs.
The BMT Replacement Cost Estimator uses our construction cost data to provide a guide on estimated replacement costs.
Contents insurance provides coverage for damage to, or loss of, personal possessions located within your home.
A key finding of the ICA survey showed that 77 per cent of homeowners don’t seek professional valuation of their possessions. Instead they assess the value themselves. This means they may not have enough cover for their possessions. Alternatively, they may be paying premiums in excess of what they need.
The survey also found one in four Australians don’t know what’s covered in their home and contents insurance policy.
Landlord insurance is designed to protect landlords against the risks associated with renting a property out. It can cover:
- loss of rental income
- loss or damage to building and contents
- malicious damage
- accidental damage
- theft or burglary by tenants
- legal expenses incurred when evicting a tenant.
As it’s an investment expense, landlord insurance can also be claimed in your tax return. Read more about landlord insurance and what it covers.
BMT can tailor an insurance package to suit your needs. If you don’t already have insurance or you’re unsure if your insurance is adequate for your investment property, contact BMT Insurance online or call our expert team on 1300 728 726 today.
The information provided is general in nature and does not constitute personal advice.
This means that whilst we may generally recommend the products we arrange on your behalf, we do not consider whether the product is appropriate for your own personal objectives, financial situation and needs in making the recommendation.
You will need to consider the appropriateness of any information or general advice given, having regard to your personal situation, before acting on the above.