Hello
Am humming and harring about whether to purchase Landlords Protection insurance for one of my ip's.
What would you gurus out there recommend? Purchase or not? I haven't had any issue thus far
but then again, that is what insurance is for isn't it?Your help with this issue would be greatly appreciated.
Regards
Nathan
Hi Nathan,
you've answered your own question…..that's why it's called insurance.
You are debating about purchasing LL insurance on "one of your IP's" , does that mean you own others without it?
Get it.
For the price of landlords insurance premiums it's well worth it. If you tenant skips even 1 week's rent you'll likely recover your annual premium in that single claim.
And that's not even considering that the premium is deductible.
Why wouldnt you?
Imagine you find out one day that the tenant has run and left the kitchen on the back lawn in pieces? Its all about risk, like any insurance. Its a small cost for the piece of mind. I went with GIO as some of the policies did differ from IAG (NRMA).without question, YES.
The General wrote:HelloAm humming and harring about whether to purchase Landlords Protection insurance for one of my ip's.
What would you gurus out there recommend? Purchase or not? I haven't had any issue thus far
but then again, that is what insurance is for isn't it?Your help with this issue would be greatly appreciated.
Regards
Nathan
Generally I would say yes its the default setting. Having said that I will contradict myself and say that on one of our properties we dont have it. The others are standard places , McMansion and a reltively nice unit each of which its easy enough to do significant damage to.The non LL insured place is a one bedroom unit which is really just a besser brick box, which cost us about $7k to reno from a cess pit to a nice rentable place (not costing our part time labour). With this place the structure is insured by the body corporate, we can fix anything inside the place(we know because we have) and with a decent property manager we are unlikely to get a really bad tenent. At this stage we feel OK leaving this one without LL insurance. We are also lucky enough to be able to carry the rental foregone if it was vacant for a while.
Having said all this the tenant will probably now roast a goat on the lounge room floor to celebrate some deity , but at the moment we feel OK with the small risk (as we see it)
When we got our first, we thought – well there's a landlords insurance thing .. must be there for a reason .. so we took it out (after a few quotes) … got a prop manager – as one does … tenant – yup need them, got some …. and they always paid on time .. the odd glitch .. but up to date …
BUT … we had a prob with the prop manager .. all the great reports and so on .. check the statements and .. we'd been ripped off (jugglin of rates and water compsumption) … Soooooooooooooooo .. get our bucks, ping the prop company .. and then the new prop mnger say … we've gotta do somethin about the tenants in this one …
when we'd elected no to renew the lease … well … something had been cooked in the loungeroom (might have been a goat for all we knew) … UNFORTUNATELY, there was no chimney in that room … sooooo .. it got sort of … well .. black … and ya know, smoke travels, down hallways and so on .. through window treatments and so on … and the burnie bits didn't help the carpet at all
LL insurance saved us a fortune … check the wrinkles in the policy (and make certain ya tenants are up to date with rent at the time you sign) … its a given, tax deductable .. and one sleeps better ..
AND .. it can protect ya from awful prop managers as well when ya left with their mess
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