What Happens if the Tenants Wreck your Property?
Australians love taking risks even when the potential consequences can be devastating.
If you want proof consider this; One third of homeowners lack adequate house and contents insurance. Many are seriously underinsured, according to the Insurance Council of Australia.
It’s a recipe for disaster and there is no evidence that landlords are any different.
While you probably do have building insurance and some form of home and contents; it may be years since you bought the policies and likely you’ve never reviewed and updated them.
And what about these events:
- Are you covered if your tenants trash your property leaving it uninhabitable for weeks?
- How will the mortgages be paid if the key breadwinner in your family becomes seriously ill or dies?
Are you confident you or your family could cope given high interest rates; flattening house values in some areas; and the prices tradesmen charge for even minor repairs?
Property investment is a business and in all business risk needs to be identified and managed.
With this in mind Finding Finance is working with two reputable insurers who cater for investors.
Our Landlords’ Protection Policy offered by BT Insurance includes cover for:
- Malicious damage to building and fittings by tenants
- Theft by Tenants
- Loss of rent if tenants default
- Some legal costs
Our Loan Protection Plan offered by Australian Life Insurance will help pay off or reduce a mortgage if death, terminal illness or any one of 11 serious medical conditions afflicts a family’s main breadwinner. Its features include:
- No medical examinations
- Cover even where you have previously suffered a serious illness or injury
- Flexibility to suit your needs and budget
Just as investors should regularly review their borrowing needs, so should they review their exposure to risk and how it is managed.
If you want more information on these important asset protection products please click on the links below to enable a specialist advisor to contact you.
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