Understanding Property Insurance

Property Management

Whether you’re a landlord looking to keep your investment safe or a tenant wishing to protect your belongings, understanding your insurance options (and obligations) is important. Ever-present risks are overlooked at your peril, especially in winter! C&G has brought you the basics to help you understand property and insurance, and what it might mean for your circumstances.

For landlords

As a landlord, you have a responsibility to maintain your investment property in a way that is both safe and comfortable for your tenants. According to one Domain article, ‘Band-Aid’ repair jobs are one of the biggest mistakes a landlord can make. In fact, many tribunal decisions have seen landlords ordered to pay significant compensation for failing to maintain their tenanted properties in good repair.

By making sure that you’re insured properly – and that your property is well maintained -  you’ll be able to rest easier when it comes to your liabilities. A simple thing like a faulty gas heater can represent a real danger for tenants and landlords. Just this month an elderly person passed away from carbon monoxide poisoning near Melbourne (The Age), and we remember with sadness the tragedy of two young Shepparton boys passing from the same cause in 2010.

Similarly, faulty ovens can cause fires, leaks can cause flooding or slipping hazards, and mould can exacerbate asthma symptoms and make tenants ill. Swimming pools are aspects of an investment property which must be carefully managed – where obligatory safety measures are not in place, landlords may be liable for unforeseen injuries.

In this sense, as an investment property owner, it’s simply too risky not be covered by landlord insurance. A specialised landlord insurance policy can protect you from the many risks associated with owning a rental property, from malicious and accidental damage to loss of rental income.

 

For tenants

As a tenant, your landlord is responsible for the building itself, but what about your precious possessions? Landlord insurance doesn’t cover your possessions: furniture, electrical goods, jewellery and other valuables require separate contents insurance.

Renter’s insurance is a form of content cover for your possessions in the event of a fire, flood or burglary. Some policies can also include pet insurance, accidental loss or damage to your items, or to fixtures/fittings where the fault lies with you.  

You’ve heard it a billion times in relation to insurance, but ‘don’t wait until it’s too late’ just about sums it up! Contact the experienced property management team at Chisholm & Gamon Property here for answers to any questions you may have about your options and obligations. We’ll be happy to provide you with a list of recommended insurers that we know to be reliable in covering you according to your needs.