Is rest assured with insurance?
Sydney Morning Herald
Saturday March 19, 2011
QUESTION I insure my investment unit with a landlord's insurance policy covering contents damage, personal liability and loss of rent. The contents have been "written down" to an amount where there is not much considered risk.I don't think rent non-payment is likely and the cost of insurance has risen to more than $400 a year. I wonder if it's worth it.Owner, Centennial ParkANSWER With landlord's insurance you are paying for peace of mind and maybe you already have that with your current tenant - although the unexpected can always happen through no fault of either party.Last weekend's Sun-Herald had a story about a landlord who thought she had insurance but didn't. Her tenant defaulted on his rent and trashed her apartment. As a result, she missed the opportunity to sell before the market dropped.Another article from last year stated most claims are for loss of rent but cited unexpected events - like a tenant's sudden death - where insurance kicked in.And don't forget Murphy's Law - as soon as you cancel your cover, disaster will strike.Go to flat-chat.com.au/forum for links to the articles and join the discussion or ask your own question.
© 2011 Sydney Morning Herald