Getting started as an investor
September 11, 2020
Purchasing a property is one of the biggest decisions you will ever make, ensuring your asset is insured and protected should be the first thing you consider when purchasing a property.
The first item I wanted to talk about is:
1. Building Insurance
Building insurance protects against damage to the property's structure. The cover extends to more than just walls and roof; it can include your garage, outbuildings, perimeter walls and pools. It is important to ensure your property for the full cost of re-building otherwise any claim payment may be reduced.
Be aware that the full cost of reconstruction is the cost of rebuilding your home, not the market value. You should also always notify your insurance provider when the property is being tenanted.
Building insurance covers damage from:
• Fire • Explosion (caused by gas leaks etc.)
• Lightning strike • Earthquake
• Storm damage • Vandalism
• Falling trees • Vehicle collisions with the building
• Water damage
2. Landlord Insurance
Landlord insurance generally covers events that cause loss of rental income, damage or theft in your property.
While your rental income may cease overnight, your mortgage repayments or the need for income won’t. Some examples include; tenants leaving without notice, damage caused by your tenants, or your property becomes uninhabitable due to unprecedented event occurring such as a fire or burst pipe.
Landlord insurance covers:
• Damage or theft by tenants
• Loss of rent
• Rent default
• Contents of Landlord
• Clean-up costs associated with illegal drug production
A tree falls on to a house off the back of a violent storm leaving the property uninhabitable for 9 weeks. Solutions: A Landlord Insurance policy would respond by covering the loss of rent during this period. A Building Insurance policy would respond by covering the cost of repairing the properties structure
3. Smoke Alarm Compliance
Every landlord in Australia has an obligation to ensure the property they rent out to tenants meets certain State and Federal smoke alarm legislation. We make smoke alarm compliance a breeze by ensuring your obligations are met.
As a busy landlord, your time is precious. The last thing you want to do is organise access with tenants and familiarise yourself with detailed legislation and Australian Standards.
For only $99 per year (which is usually tax deductible), your legislative obligations can be met, mitigating the risks involved with non-compliance including dismissal of insurance claims, personal injury or worse.
Don't leave your smoke alarm compliance up to chance - make sure you deal with the experts in their field.
New requirements are to be in place by 1st January 2022 for QLD rental properties, necessitate the following measures:
•Smoke alarms must be installed in every bedroom of a home
•All smoke alarms must be powered by either 240 volt or 10-year lithium battery
•All smoke alarms must be interconnected to each other
•All smoke alarms must be photoelectric rather than ionisation
•All smoke alarms must comply with AS3786:2014
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