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Each year I Insure the unit with an Landlords Insurance policy covering contents damage, personal liability and loss of rent as an example.
The value of the carpet and blinds have now been 'written down' to an amount where there is not much of considered risk .
The cost of insurance has risen to over $400 a year and I now wonder if its all worth it ?
Having no experience with the liability aspect and under present circumstances don't consider the possibility of a non rent payment an issue
I'm just wondering what experiences others have had under similar circumstances .
Thanks
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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.
It won't seem worth it if you pay for years and nothing goes wrong. It will seem like terrific value if your tenants wreck the place and get you into expensive legal strife with your neighbours.
Today’s Sun-Herald has an article by Bina Brown about a property investor whose tenant defaulted on his rent, trashed her apartment and by the time she fixed the place she’d missed the opportunity to sell, as planned, before the market dropped.
Another article by Susannah Petty in June last year stated that most claims are for loss of rent but cited a few cases where people were getting cover for things they were already insured for or no cover when they thought they had it.
And then there’s Murphy’s Law – as soon as you cancel your cover, disaster will strike.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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