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What insurance to take as Investor ?

Discussion in 'General Property Chat' started by AlbertWT, 6th Nov, 2015.

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  1. AlbertWT

    AlbertWT Well-Known Member

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    Hi All PC forumites,

    I’m new to this investing world and would like to know what sort of insurance that you must take and optional to take when purchasing a house ?

    And which one is tax deductible in the next financial year ?

    So far I only have:

    Private Health Insurance
    Income Protection Insurance TPD
    Land Lord Insurance (for my first IP - town house)

    Thanks in advance,

    Al
     
  2. Azazel

    Azazel Well-Known Member

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    Combined with building insurance or separate, more applicable to a house.
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    For an IP you generally get landlord and building (if applicable - not usually required if property is under a strata/body corp).

    As for personal stuff - I personally make sure I've got enough life, trauma, disability and income protection insurance. What you require depends on your own individual circumstances though.

    Cheers

    Jamie
     
  4. AlbertWT

    AlbertWT Well-Known Member

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    Hi @Azazel Yes this time I'm looking to buy a house so I was told by the R/E agent to get insurance, hence I ask for some info in this forum.

    So in summary:

    for a free standing investment house:
    Land Lord Insurance
    Building Insurance without content​
    for a strata managed property:
    Land Lord Insurance only is enough​
    for each of the loan related linked to one of the IP above:
    Mortgage / Credit protection insurance (in case for some reason I cannot work and can't pay the negatively geared property only).
    is that correct or is there anything that I need to know ?

     
  5. AlbertWT

    AlbertWT Well-Known Member

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    @Jamie Moore Yes, I've got:
    Income Protection Insurance (in case of sickness or disability)
    Life Insurance (included with my Industry Super Fund)
    Home Content Insurance (for my PPoR)
    Funeral Insurance cover (as offered by the tele marketer)
    Hence I can only claim the premium I paid for following insurance:

    Income Protection Insurance
    For each of the loan associated with my IP:
    Mortgage / Credit protection insurance
    Land Lord Insurance
    Building Insurance

    is that correct ?
     
  6. JohnPropChat

    JohnPropChat Well-Known Member

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    I would make sure income protection is for own occupation rather than "any" occupation. Same thing with TPD.If you are getting those through super then some insurers will let you top it up outside of super for own occupation.

    For IPs, I find mortgage/credit insurance to be quite expensive. I would rather use that money to top-up my Life and TPD insurances.

    I only get hospital cover to get ambulance cover and avoid paying medicare levy surcharge.
     
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  7. Chilliblue

    Chilliblue Well-Known Member

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    Be careful if you have a strata property not to assume that you will not require building insurance.

    You always need to check what you actually are responsible for and what the strata plan is otherwise if the property is destroyed or damaged you may be up for a hefty bill.
     
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  8. AlbertWT

    AlbertWT Well-Known Member

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    Yes, which means I will need to get the certificate of currency before the settlement. is that correct ?
     
  9. AlbertWT

    AlbertWT Well-Known Member

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    Ah I see, thanks John for the suggestion.
     
  10. Chilliblue

    Chilliblue Well-Known Member

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    Have a clear understanding of what the Strata plan owns and what fixtures and fittings are your responsibility.

    For example recessed light fittings, exhaust units, etc
     
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  11. AlbertWT

    AlbertWT Well-Known Member

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    Thank you for the suggestion mate.