Bushfires offer a timely reminder for landlords

BMT team — Tue, 10 Dec 2019 03:58:43 +0000

Australia has suffered through an extraordinary bushfire season with almost 5 million hectares of land burned in New South Wales alone. Many areas across the country continue to battle the elements as fire scorches natural habitats and threatens to destroy hundreds of homes in its path. In places where fire hasn’t reached, smoke haze lingers as a stark reminder. 69 fires contiune to burn in NSW with 20 to be contained. Firefighters have worked tirelessly to slow the spread of fire and build containment lines ahead of increased fire dangers. Hot and windy conditions are expected to return to many parts of NSW this week. #nswrfs #nswfires pic.twitter.com/cSZL0dL73K — NSW RFS (@NSWRFS) January 19, 2020 The 2019-20 bushfire season offers a timely reminder of the importance of having proper home insurance. Authorities in New South Wales estimate that more than 1,500 homes have been destroyed by fire, so it’s vital that you have the proper insurance to protect your investment property. Are you properly insured? In 2018, the Banking Royal Commission’s probe into the insurance sector brought to light widespread misconduct and breaches of the Insurance Code of Practice. One issue that was raised was underinsurance, where policyholders were led to believe that their policies covered the full replacement of their properties but discovered their cover fell short when they made a claim. For property investors, this means facing considerable losses and risking financial hardship in the case of a natural disaster like a bushfire. More recently, an Insurance Council of Australia report found that a staggering 70 percent of Australians use their own judgement as the basis for an insurance valuation. This is an alarming statistic, given landlords could lose thousands if they have insufficient cover. Types of insurance to consider As a landlord, it’s essential to have an understanding of investment property insurance including building and contents. Building insurance covers the cost of repairing damage to the structure of your property, particularly in the event of a fire, storm or flood. While contents insurance covers for damage to, or loss of, personal possessions in the home. Of those with contents insurance who purchased a new high value asset in the past five years, more than half did not update their contents policy after making the purchase. In fact, a startling 23 per cent of homeowners said the highest value item in their home wasn’t covered. This leaves investors exposed in the event of natural disaster, especially given there may be thousands of dollars of claimable depreciable value left in destroyed assets. It’s important to contact a specialist Quantity Surveyor if assets are damaged as a site inspection may be required. Loss of rent cover is another option designed to cover your financial loss after damage to your property prevents it being tenanted. This damage may be caused by floods, fires, and any others indicated in the policy’s product disclosure statement. This cover may also apply where property access is prevented by damage to surrounding properties. With 77 per cent of homeowners exposed to significant financial loss, it’s more important than ever to review, renew or arrange proper home insurance for your investment property. As an insurance broker, BMT Insurance has access to construction cost data to provide a guide on estimated replacement costs on your property. This guide can help you to find the most cost effective insurance to meet your needs. For more information, contact the expert team at BMT Insurance or call 1300 268 467 today. Related articles: What is landlord insurance and what does it cover? Home and contents insurance you need for your investment property

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Home and contents insurance you need for your investment property

BMT team — Fri, 18 Oct 2019 00:17:14 +0000

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 Contents insurance Landlord insurance Building insurance 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 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 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.

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Bushfires offer a timely reminder for landlords

Home and contents insurance you need for your investment property