You take out insurance for your car, health and home. So why not on your investment property against worst case scenarios? Even with the best property management team in the world, some investors still worry about tenants not paying rent, damaging property etc as it is a factor that is completely outside their control once they’ve handed over the keys.
A typical landlord insurance policy should cover:
For a 1 bedroom apartment, the cost shouldn’t be more than $400 per year. A small price to pay for peace of mind and also mitigating the risk of potentially thousands of dollars in out of pocket expenses that the rental bond does not cover. As it is an investment expense, it is fully tax deductible, so the cost is even lower.
We recommend that all of our clients take out the appropriate Landlord Insurance policy and to engage the services of a professional property manager to ensure that the day to day management of their investment is as trouble and stress free as possible.