There is a level of risk that comes with owning an investment property and ensuring that you have the right level of cover is a crucial step to reducing risk over your property.
Your property manager will always process any applications that they receive from tenants, checking all references thoroughly, however life doesn’t always go according to plan and even the best tenants can face challenges during their tenure.
There is always added risk from changing weather conditions and other life events that can’t always be planned and having a strategy to protect your capital is prudent.
Is your policy up to date with the latest property value?
It will be up to you to keep up to date with the value of your property and update your insurer as they won’t always automatically adjust the value covered based on the rising market.
Don’t assume that once you take out the policy it is set and forget, and you must keep up to date with this value to ensure that you are not caught short.
When working out the sum to insure, consider rebuilding expenses of the property and other associated costs. If your policy does not cover these, you may need to increase the amount insured.
Review the type of coverage
A good policy should insure you for a multitude of adverse events that may occur at the property. Check your building insurance coverage, especially in an area that may be subject to fires or flooding and your level of cover.
A comprehensive landlord insurance policy will cover damage, malicious events, and damage from pets, in addition to defaulting tenants. If these aren’t in your current policy, talk with your insurer about the best options available.
Compare the market
Continual weather events and the rising costs associated with living can contribute to rising premiums on your policy. If you haven’t reviewed the policy for some time, carry out a price comparison to check how your policy measures up and you may find some considerable savings.
Changing the payment frequency from monthly to annually can also reduce the number of premiums per annum and put extra funds back in your pocket for your investment.
If you are due for a review on your insurance premiums, talk to our property management team to see how they can assist in reducing the risks on your property and ensuring that you are covered while maximising your biggest investment.