The importance 
of holding insurance to protect your investment property is an obvious choice for most. As Property Managers we always recommend both. Landlords Insurance is often overlooked or policies are taken out that don’t really allow you to claim on what is needed. As a property owner, it is still important to become familiar with exactly what you are covered for, and the difference between Landlord Insurance and Building Insurance.
Landlord Insurance
Landlord insurance generally covers events that cause loss of rental income, malicious damage or theft in your property. While your rental income may cease overnight, your mortgage repayments or the need for income won’t. Some examples include; tenants leaving without notice, damage caused by your tenants, or your property becomes uninhabitable due to unprecedented event occurring such as a fire. What happens if your tenant loses their job, and can no longer afford the rent? What happens if a tenants relationship turns violent and the property is damaged? These are all things that are out of the owner or property managers control, and events that with landlords insurance you can be protected against for potential repair costs or loss of rent incurred. Different landlords insurance policies will cover different events, and the excess vary DRAMATICALLY, so research carefully before you choose. Until you make a claim, the excess might not seem important. Our experience has shown that the variations on excess for rent loss can be between $0 upto to 4 weeks rent or more. This is quite substantial when you are in a position that you need to make a claim.
Building Insurance
Building insurance protects against damage to the property’s structure. The cover extends to more than just walls and roof; it can include your garage, outbuildings, perimeter walls and pools. It is important to insure your buildings for the full cost of reconstruction otherwise any claim payment may be reduced. Be aware that the full cost of reconstruction is the cost of rebuilding your home, not the market value. You also always need to notify your insurance provider when the property is being tenanted.
At Radi Estates we have many insurance companies that we have had dealings with over the years, and can share our experiences and pitfalls to look for when choosing an insurance policy that is suitable for you. Email management@radiestates.com if you require further information.