Insurance you should have as a property investor
Updated: May 27, 2022
If you're an investor it's important that you are able to protect your rental properties and finances. At the end of the day, it's important to to do this so that you can sleep comfortably with thought that you're protected in the instance of financial uncertainty.
Landlord insurance is an insurance policy that you can NEVER underestimate as a real estate investor. It's important 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
fire or explosion
accidental glass breakage
Although we don't like to think about our own mortality, we'd like to know that our dependents would be looked after in unforeseen circumstances. Having a life insurance policyin place if you're a real estate investor is another great contingency. 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
The next type of insurance that you should have if you're a real estate investor is income protection. This policy protects you in instances where you no longer have 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 property, 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:
If you're a real estate investor or 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.
Reach out on the details provided below:
Ph: 1300 130 932