How To Find Peace Of Mind As An Investor
An insurance company slogan once famously claimed, “No one can surely predict the future, but we can protect it” – a pitch to give today’s property investors reason to think.
You never know when disaster might strike and you need to repair damage, cover a liability claim after a tenant’s injury or suffer a loss of income if a renter defaults on a lease. Therefore, having the right insurance in place is of the utmost importance.
There are policies specifically designed for properties that the owner doesn’t occupy and can cover damage caused by tenants, vandalism, theft, and natural disasters. The cost of these policies will be influenced by the extent of coverage, the type of property, its age, condition and location. Whilst it is a requirement for the owner to hold appropriate cover for the home and liability, one cover often overlooked is Landlord Insurance.
As an investor or landlord, we highly recommend taking out specific Landlord Insurance relating to the tenancy and the agreement in place. Whilst many risk mitigation strategies and processes are in place, unfortunate circumstances can still occur out of the agency or tenants’ control such as the passing of a tenant or job loss.
It is essential that you shop around and be clear on what the various policies include/ exclude, and the excess applied for each event. Insurance will not protect you against wear and tear or maintenance of your property and it may also not cover you if the agency is proved to be negligent in its actions. Investing in property can sometimes be a stressful experience, however selecting a proven agency and holding the recommended cover will give you the peace of mind that your asset is protected.
If you’re looking to invest in the buoyant Perth market or perhaps thinking of changing agency, we would be delighted to assist. Mont is familiar with the various trends in the current rental market, and the style of properties quality tenants are seeking. Feel free to contact us and discover our difference.