Your owners corporation fees include insurance so that covers you, right? Wrong. Here are 5 tips to help you stay ahead.
1. Understand your risks
Becoming a landlord can be an exciting stage of life but landlords face a series of risks including
- Accidental damage to contents you own like lighting, carpets and kitchen appliances
- Malicious damage by tenants or even burglars
- Damage from fire, floods and storms
- Loss of rent while the apartment is being fixed
- Legal liability for injury in your apartment
Landlord insurance is designed to cover your risks.
2. There are savings in strata
Some landlord insurance is designed for houses so you can end up paying for things you don’t need. A good way to spot this type of policy is wording like “Building insurance for landlords” – your building is normally covered by strata insurance so you don’t need this!
A better way is to have a landlord policy specially designed for strata from companies like CHU. A good landlord policy for strata will start where the strata insurance stops so you get value for money.
3. Airbnb cover
This might sound obvious but short term rental is growing in popularity. It is worth checking that it is covered by your landlord insurance.
You may not be planning for short term rental now but the rental market changes and it’s simpler to have it covered in your landlord insurance. Flexibility rules!
4. NSW laws
NSW laws tend to favour tenants. And there is no sign of that changing any time soon.
Sometimes we focus so much on laws that we forget that NSW landlords can still have very positive results! Landlord insurance covers some of your risks and helps you operate in contemporary NSW.
5. Why did you decide to be a landlord?
It wasn’t because you wanted more headaches, was it? When you think that landlord insurance is really covering your financial results, it is so worth it.
What is the value of peace of mind? Priceless.