Coverage of landlord insurance

Hi!

It is me again. I figured it might be better to ask the wise minds here.

So I have decided to go with Terri Scheer on landlord insurance.

The question I have is: how much should I get insured for? I have a one bedroom, one study apartment. It was purchased off the plan. But, for something off the plan, it has been pretty well built.
It has timber flooring, joinery (in built cabinets, timber on bathroom wall/ceiling, tv unit storage, pantry), customised remote control block out blinds. There’s an inbuilt fridge and dryer.

I know you typically insure for what you might need to replace all that. But I have no idea how much it costs to replace all that came with the apartment, especially timber.

Could anyone please offer any thoughts on how much they have insured a similar sized place for?

thanks!

 

You insure for loss. You need to determine what that is.

1. The buiding is insured by strata.
2. You should have adequate insurance for contents. This includes your plant items, fixtures, fittings, window coverings and flooring. That YOU own. Not tenant property. Total loss can easily occur through smoke, fire or water damage. This can initiate in another apartment. Your estimate should also allow for removal replacement, repainting and minor fixtures (eg lights, smoke alarms etc) as well as the replacement installation.

Insurers often have a estimator tool etc. Is the policy for replacement cover or do they depreciate ?

 

If its an apartment, generally the strata will hold a building insurance policy, you just need to check that is in place.

Assuming it is, you ony need to get the LL component of TS (or whichever insurer you choose). There typically isnt anything you need to specify on these policies (they all have a built in amount of liability, contents, etc).

 

It is for LL component indeed. It says it comes with $60k of cover. But it allows for extension up to $100k. So I’m not sure if that’s something I should be extending. The reason I am asking is my apartment do come with a fair bit of in built joinery. So, the LL component will have to cover that. But I’m terrible at estimating how much it costs to replace joinery and all.

 

thank you! Very good point on damage initiating from another apartment!

It’s the estimation of how much contents I should insure for that I’m struggling with. As it’s off the plan with plenty of inbuilt timber joinery and all timber flooring, I’ve no idea how much they cost.

I might look to see if other websites have a calculator.

The policy is for just the landlord component. I assume it’s replacement cover plus other things related to tenants.

 

I'd actually check if those things are included on the building policy since they're fixed.

 

Being fixed to a wall doesnt mean they are strata property. eg kitchen, window covering etc. But strata windows with blinds inside glazed windows are.

Many strata properties come with cabinets and finishings that are tenant property. Many people mistakenly beleive if its fixed to a wall it is strata property. They use the example of tipping it upside down. Quite incorrect. The strata plan will define such matters.