INSURING YOUR IN­VEST­MENT PROP­ERTY

Highfields' Own - - REAL ESTATE -

As a land­lord you may have to re­place items stolen or dam­aged by ten­ants. Land­lord in­surance can pro­tect your in­vest­ment prop­erty in much the same way as you pro­tect your own home, says NAB.

When re­view­ing a rental ap­pli­ca­tion you’re hop­ing to choose the per­fect ten­ant.

Even ideal ten­ants could lose their job, get in­jured or have their work hours re­duced.

So it makes fi­nan­cial sense to pro­tect your in­vest­ment prop­erty with land­lord’s in­surance.

COV­ER­ING YOUR CON­TENTS

You can in­sure the con­tents you’ve left for your ten­ants to use. You’ll be cov­ered for the dam­age caused by your ten­ants or re­place­ment costs if they’re stolen.

LOS­ING YOUR RENTAL IN­COME

This type of in­surance can cover you for loss of rent if your ten­ant doesn’t pay. You’re only cov­ered if you still have a mort­gage on the prop­erty, not if you own it out­right. So if your ten­ant packs up and leaves with­out no­tice or they die, your rent de­fault will be paid. You might also be cov­ered for le­gal ex­penses in­curred to re­cover the rent owed.

PRO­TECT­ING YOUR IN­VEST­MENT PROP­ERTY

Na­ture is un­pre­dictable and has a way of re­mind­ing us through crazy storms or life threat­en­ing fires. If this hap­pens and you have build­ing cover you’ll be cov­ered for any dam­age caused by these types of nat­u­ral dis­as­ters.

LAND­LORD IN­SURANCE

It might seem like an­other ex­pense added to your bud­get plan but re­mem­ber it can be a tax de­ductible ex­pense. For in­stance, a cou­ple of month’s lost rent could cost $2600. A new couch could be $500 and a bro­ken win­dow from storm dam­age an­other $500. This to­tal cost of $3600 is prob­a­bly higher than the cost of tak­ing out land­lord’s in­surance. It makes sense to pro­tect your in­vest­ment prop­erty with land­lord in­surance and to con­sider the op­tional ad­di­tional cover for Rent De­fault and Theft by Ten­ant.

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