Hello everyone,
I've found a property which has an impressive yield and other growth drivers.. However the suburb has a poor reputation for having a lower social demographic. I keep getting negative smart ass comments from mates saying ill have keep repairing holes in the walls or the place will get burnt down or shot up ect ect.
Im curious as to what cover I can get if any to cover me against unfortunate events like damage, non rent payers ect? If insurance more expensive depending on the property's location? What tHe company void or not renew my insurance after multiple claims?
Cheers,
Sam
Sam, …… It doesn't matter what Landlord Insurance costs it is an essential part of property investing for piece of mind. One of my properties in a similar type of area you are describing had $18,000 malicious damage done plus 4 months of lost rent. I only lost the policy excess amounts, the rest was paid.
You can do your best to ensure you get a good tenant, but in the end it really does come down to luck and the quality of your property manager. In regards to the mates …. you should be able to give it back to them in a few years when some capital growth kicks in.
In regards to your landlord insurance multiple claims questions, ….. Speak to several insurance companies to compare their policy coverage and policy claim criteria.
Mystery
Other than getting LL insurance, everything else is pretty much beyond your control. Getting a good property manager on board is a good start even if you have to pay a little more than the others, you have the higher yields to cover it.
Great thanks for the responses guys. I will def look into Landlords insurance. Pardon my ignorance but I gather LL insurance protects against damage and loss of rent. Would anyone recommend certain insurance companies and policies?
thanks appreciate it
Landlord insurance is a must. Also don't forget to get the quarterly agent reports on the condition of the property. Don't expect that the agent is doing their job properly.
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SamSavva wrote:Great thanks for the responses guys. I will def look into Landlords insurance. Pardon my ignorance but I gather LL insurance protects against damage and loss of rent. Would anyone recommend certain insurance companies and policies?thanks appreciate it
Landlord insurance generally only covers you for proven malicious damage not general wear and tear.
We use NRMA because we get a good discount and they have always been fair with our claims. Others will have their preference.
All the best
Mystery
There are a few providers our there eg aami, territory sheer, nrma, westpac etc. Shop around for the best cover not the best price.
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