• Real Finance

Insurance You Should Have As A Property Investor

Updated: Mar 9

As an investor it's important to protect all of your assets, as goes for your investment property(ies). In this article we will explain the three types of insurance packages that you should have in place if you are or are considering becoming a landlord. At the end of the day, you want to sleep comfortably with peace of mind knowing that you're protected against potential uncertainty around your investments.

Landlord Insurance

Landlord insurance is an insurance policy that you can NEVER underestimate as a property investor. Unexpected matters can happen more often than you might expect and because of this it's always a wise idea to have a contingency plan in place. As it's an investment expense, landlord insurance is tax deductible. Below are a list of items that landlord insurance can protect you against as a property investor:

  • theft or burglary by tenants

  • damage or vandalism caused by tenants

  • loss of rent due to tenant default

  • legal expenses involved when evicting a tenant

  • building replacement insurance against natural disasters

  • damage to property resulting from impact

  • fire or explosion

  • water damage

  • accidental glass breakage

Life Insurance

Although we don't like to think about our own mortality, we would like to know that our dependents would be looked after in unforeseen circumstances. Having a life insurance policy in place is important, especially if you're a property investor. Life insurance will cover the costs of debts, including your investment property and lessen the burden of these debts on your dependents if you were to pass. It would ensure that payments and loans were paid for in the event of your passing, alleviating the stress on yourself and those who are left with your assets once you are gone.

Income Protection Insurance

As an investor, it's important to consider income protection in the instance you are left without a job. Whether it be due to illness or redundancy, income protection is a policy that you want to have in place to cover your expenses until you're able to find employment again. As a landlord, it would also be enough to cover the expenses relating to your investment portfolio, including mortgage repayments. Income insurance will cover 75% of your income until you are able to find employment again.

For more information on why it's important to have these three insurance policies in place as a landlord, watch the video below:

More Information

If you're a property investor or looking to invest in property, we strongly suggest reviewing your current insurance policies. If you don't have these types of insurance protection policies in place, consider reaching out to chat to our general insurance brokers or our financial advisors. In the grand scheme of things, these insurance policies are a small expense that will give you a peaceful sleep at night. You will rest easy knowing that you're protected in the instance that you're met with unforeseen circumstances.

Reach out on the details provided below:

Ph: 1300 130 932


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