First Investment Property - What insurances required?

Discussion in 'Property Management' started by outtodry, 30th Jan, 2022.

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  1. outtodry

    outtodry Member

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    Hi Team,

    I am looking to purchase my first investment property.

    I tried to have a look at existing threads but perhaps I was typing in the wrong things.

    Is there a go to list of insurances in order to have peace of mind as a landlord? Acknowledge any additional expenses eats into rental returns.

    Thanks in advanced!
     
    outtodry, 30th Jan, 2022
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Scott No Mates, 30th Jan, 2022
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    There re two basic policy paths and this varies by property type

    1. Strata. The BUILDING is insured by the strata. The cost is included in levies you pay. In addtion a owner should consider a CONTENTS policy that covers owners fixtures. Think of the over, carpets, etc. Then there is LANDLORD insurance which could include the contents or be seperate (cost effective when it is combined!!)and it will cover specific issues to a rental incl rent arrears and danages (sometimes).

    2. Freestanding on own land title. BUILDING & CONTENTS insurance. Commonly one policy for cost effectivness. LANDLORD insurance

    Landlord policies also can have a specialist upgrade eg short stay polcies. Usually only through LL insurance specialists like EBM and Terri Sheer. Short stay polciies have specific cover for airbnb and similar property use unlike other policies which usually refer to residential tenancy leases, So if its not a lease there may not be any covern. And insurers will declined cover for risks they dont know about.
     
    Paul@PAS, 31st Jan, 2022
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  4. dabbler

    dabbler Well-Known Member

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    Not on any team, but you want to look at ones who do pay genuine claims, no point having cheap insurance that does nothing but deny when really needed.

    Insurance has it's own in depth study required.
     
    dabbler, 31st Jan, 2022
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  5. dabbler

    dabbler Well-Known Member

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    dabbler, 31st Jan, 2022
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  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Building insurance - this covers things like flood and burning down etc

    Landlord insurance - this covers things like rent and tribunal fee if you need to do an eviction. This will usually cover a small amount of contents for things that belong to you in the house.

    Contents insurance - taken out by the tenant not the landlord. Ie if home gets burgled then this is on the tenant's policy.
     
    D.T., 31st Jan, 2022
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