All Topics / Help Needed! / Landlord Insurance

Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of MMBMMB
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    @mmb
    Join Date: 2012
    Post Count: 2
    August 22, 2012 - 1:03 pm

    Hello all,

    I am new to property investment with the recent completion
    of our house and land package.

    At our PC inspection, we were informed of a high crime
    Rate in our IP area and it was suggested that we look
    into Landlord insurance. Is Landlord insurance necessary?
    Is anyone able to provide recommendations for this?

    Thanks
    MB

    Profile photo of N@thanN@than
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    @n-than
    Join Date: 2010
    Post Count: 241
    August 22, 2012 - 8:45 pm

    Hi MB,

    For how cheap landlord insurance is I definitely think it is worth it!

    I am guessing you already have Home and contents insurance?

    -Nathan

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    August 22, 2012 - 10:14 pm

    Hi MMB,

    There is no question about the fact that you should have landlord insurance. I had a bad experience within one of my properties and the property is based in Sydney's north shore (affluent area) and the property was worth $950k. It was severely damaged by the tenants and if it wasn't for the landlord's insurance I would have been in a lot of trouble.

    Good luck with the IP!

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Residential and Commercial Brokerage

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    August 22, 2012 - 10:54 pm

    I don't see it as optional, I see it as essential.  A tenant can do $40k worth of damage without even breaking a sweat.  Do you have a spare $40k lying around to fix the place up if that occurs?  Probably not, so you need insurance.  AAMI is my first choice.  Make sure you get building insurance, some contents insurance to cover the floorcoverings and window coverings, and landlord insurance PLUS tenant protection.  This ensures you are covered for malicious damage by the tenant.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544
    August 23, 2012 - 12:23 am

    Your bank will require building insurance as part of a condition of your loan. You will also need to identify your bank on teh insurance policy as having a financial interest in your property.

    I agree with Jac – having landlords insurance should be considered a non-negotiable cost of doing business. At around $250 (give or take depending on who you are with) it is cheap peace of mind. 

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    August 23, 2012 - 12:52 am
    MMB wrote:
    Is Landlord insurance necessary? Is anyone able to provide recommendations for this? Thanks MB

    Yes!

    There's a number of companies that offer it – read their policies to make sure they cover what you require.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of SMSF101SMSF101
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    @smsf101
    Join Date: 2012
    Post Count: 49
    August 23, 2012 - 12:56 am

    yes it is,. that is why it is called insurance. even when the property is a serene peaceful place damages must always be expected, i stepped on this site days ago., you may interested looking at  qoutelinedirect.co.uk

     

    Profile photo of MMBMMB
    Member
    @mmb
    Join Date: 2012
    Post Count: 2
    August 23, 2012 - 2:06 am

    Hi All,

    Thanks for the advice.

    Yes we have home and contents insurance and no I don't have a spare 40k lying around. So definitely not going to go without it! Can't believe the amount of damage one tenant could make! That's crazy. 

    Thanks again

    MMB

    Profile photo of flewisflewis
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    @flewis
    Join Date: 2009
    Post Count: 2
    August 23, 2012 - 4:12 am

    I also consider Landlord Insurance essential. Sometimes the damage is not intentional, but you are still left with the problem. Insurance, for a relatively small fee, reduces the stress.

    F

    Profile photo of M.InvestigatorM.Investigator
    Member
    @m.investigator
    Join Date: 2012
    Post Count: 134
    August 23, 2012 - 6:26 am

    As an investor, you must have landlord insurance for all your investment properties. You expose yourself to too much risk without it. You also sleep easier at night with insurance as you are covered for many common and even uncommon issues related to property investing.

    Profile photo of NM7NM7
    Participant
    @nm7
    Join Date: 2010
    Post Count: 45
    August 23, 2012 - 7:38 am

    While on this topic, would you also combine Landlord Insurance with RACV Emergency Home Assist (assuming you have an IP within VIC)? Also in regards to SMSF101's recommendation site of quotelinedirect.co.uk – does it cover Australian properties? Has anyone managed to get a reasonable quote from the site?

    Regards,

    NM7

    Profile photo of PLCPLC
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    @plc
    Join Date: 2012
    Post Count: 400
    August 23, 2012 - 8:49 am

    Yep, landlord insurance is essential.

    It is also tax deductible as an expense, so it won't cost as much in the end.

    PLC | Phoenix Loan Consulting
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    Melbourne based Mortgage Broker | Making Finance Simple

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