Insurance can be a complicated field to navigate. With a variety of products on the market, you might not be sure what you need as an owner of investment properties in Langwarrin.
While basic home and contents packages may seem like a good idea, landlord insurance is an absolute must. Here, we cover the basics of this essential insurance.
Each insurer will offer different packages, however you can expect landlord insurance to cover three basic areas: loss of rental income, damage to the building and theft or destruction of contents by tenants or guests.
While the bond paid by your tenants is intended as security in the event of these circumstances, extreme cases can end up costing you a lot more than the value of the bond.
Some of the stronger policies available will include additional cover for some of the following events:
The extent of coverage you choose should depend on your rental strategy. Fortunately, tenants in Victoria have only been getting more reliable, with claims for malicious damage or rental defaults dropping by 4 per cent in the most recent data from RACV, so you may want to focus your policy selection on other areas.
How much can landlord insurance cost?
It’s important that your insurance doesn’t take too large a chunk out of your rental income – especially if you’re relying on that money for mortgage repayments.
However, the cost of your premiums will likely reflect the quality of coverage you receive, as well as the risk profile of the area your investment property is in. In Melbourne, landlords spend an average of 4.5 per cent of their rental income on insuring their property, says Canstar, making it the second most affordable capital city in the country in terms of landlord insurance.
When selecting your insurance policy, weigh up the coverage and expected premiums of each available option to find the best for you.
For the best care of your rentals, a property manager is your strongest option.
A Ray White property manager not only gives you access to unrivaled market insight, but competitive insurance policies as well. With one of our team on your side, your investment will be protected through every step of the process from informed tenant selection to handling of rent arrears.
To talk about finding the best coverage for your rental properties, get in touch with a member of the team at Ray White Langwarrin today.