Housing types determine insurance options

Housing types determine insurance options

Posted on Tuesday, December 24 2013 at 10:54 AM

One of Australia’s peak insurance bodies has called on landlords to ensure they have the appropriate cover for their investment property.

Terri Scheer Insurance executive Carolyn Majda says it’s vital for landlords to understand the various insurance options available and what’s covered depending on whether they own a unit, home or townhouse.

“In a strata-titled apartment situation, strata insurance is held by the body corporate and paid for by owners’ levies,” she says.

“The body corporate is legally responsible for insuring the buildings at the strata-title site, as well as the owner’s legal liability for common property areas.”

However, Majda warns that strata insurance usually doesn’t include the interior of individual units, which means if a tenant injures themselves inside a rented apartment the landlord may be found liable.

“Landlord insurance can help to protect investors from the specific risks associated with owning a rental property, including malicious damage by a tenant, theft, accidental damage, legal liability and loss of rental income,” she says.

“Generally speaking, the cost to insure a unit is lower than a house, so it’s important to consider these features and the impact they could have on premiums when looking to buy an investment property.”

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