If you own investment properties, chances are you have insurance on your assets.
If, for whatever reason, you suddenly chose to disregard its importance, it is highly like that it would turn out to be something you regret.
And while we know it is important to have, sometimes we may overlook why we have it:
Floods, fire, loss or damages to property are just some of the obvious reasons. These can be costly and result in more than just damage to property.
Loss of rent, whether it is due to the property becoming un-livable (therefore un-rentable), a break in tenants lease, tenant hardship or even death, is an important consideration to be made. Specific considerations made be needed for specific circumstances, so if you have a concern, it’s best to check with your insurance company.
If your tenant injures themselves, or an issue with the property has resulted in damage to their property, you may be legally liable to them. While all efforts are made to ensure the property is safe, accidents can and do happen, so it’s important to be prepared.
It’s important that you review your policy from time to time to ensure it is up to date and accurate, so you are not caught underinsured when you need it most.
Renovations, depreciation and income from your property are all taken into consideration when determining what policy is best for insuring your property and these things can change.
There is often significant wording differences between policies so doing your research and obtaining professional advice, is recommended.
As your property management team, we take pride in looking after your property and ensuring it is in the best possible condition. And it is why we like to remind landlords to regularly review their property’s insurance policies and make sure they have adequate coverage.
Not only is the cost of insurance tax deductible, but it provides you with peace of mind in protecting the asset you have worked so hard for.