Insurance of your property and investment property is important. I have written about this subject before and I am doing it again because I regularly see the hardship that is created out of ignorance.
A classic example is owners of individually owned strata duplexes insuring only their own half or doing it together and splitting the cost. Sounds fine but so many only insure the building and forget to insure the common property for Public liability! This could put them at huge risk and is ileagal.
I also see investors not taking out landlords’ insurance. This is relatively cheap insurance and covers a lot of potential risks that could prove to be costly. Even tenants not covering their possessions with contents cover put themselves at risk. Recently a tenant set the kitchen on fire and ruined most of her contents due to smoke damage. Another tenant lost most of her furniture when the home she was living in was deemed unliveable due to a sewerage issue. Both of these tenants would have benefited if they had taken out contents insurance.
It is important to have the correct type of cover, but also to have the correct amount of coverage. If you under insure it will be reflected in the payout if a claim is made. You may only get a fraction of the total claim paid to you.
Insurance is about limiting your risk and can in many instances save the policy holder from financial hardship. We would encourage all property owners to speak with their real estate agent or better still insurance broker, or even better both, about the appropriate insurance cover.