Is your residential investment secure?

Purchasing an investment property is a very exciting time. Growing your portfolio can provide many financial benefits, from passive income to tax advantages, and are also a great long term wealth strategy if the value of the property increases during the period of ownership.

From the moment you sign the contract, are a whirlwind of tasks that need to be executed. Conveyancing, contracts, building and pests, loan approval, insurances, the list goes on.

With all the excitement and time pressure surrounding this process, it’s easy to see how purchasing insurance can become rushed, resulting in potentially inadequate cover.

Protecting your investment with Insurance
Insurance is the most vital process when purchasing an investment. It will protect what you’re trying so hard to achieve – a positive rental income.

There are so many aspects to a Landlords Insurance policy than just insuring the building. These are explored below.

Rent default is when the tenant falls behind in their rental payments without giving any written or verbal nature. This section also can include legal and court costs to pursue recovery of the arrears.

Theft by Tenant will protect your contents items by theft from your tenants. If your property is leased unfurnished, it can protect your fixtures and fittings. Curtains/blinds etc.

Loss of Rent will protect your rental income for 12 months where your insurer deems your property unfit for your tenants to live in.

An Accidental damage policy will extend to cover your property from Accidental damage caused by tenants. This not a standard cover for most insurers, however it is vital. Morgan Insurance Brokers offer this cover as our policies that we source have had this cover negotiated in.

Public Liability Insurance comes standard in a Landlords Insurance policy. It covers the Landlord for costs associated with a personal injury or property damage claim that they’re found liable for. This cover also extends to the tenants and their guests.

Each insurer’s policies contain vastly different terms, conditions, sublimits, and excluded covers. Its extremely important to review each quote you obtain to ensure that the level of cover is going to protect your investment.

Pricing should not be a driving factor for a policy like this as you could find yourself under insured and out of pocket if you are selective with the important additional covers mentioned above.

Engaging an insurance broker to guide you through this exciting time is going to provide you with sound advice and peace of mind that you’re adequately covered to minimise the financial impact if you ever suffered an insured event.

Brokers can source a comprehensive policy at a competitive price without having to forego these important covers.