Is your liability as a landlord of an apartment covered?

Whether your rental property is part of a long-term superannuation investment strategy or to provide additional cash flow now for life’s little luxuries, it’s important that your investment is protected.

The Strata or Community Title Acts requires each corporation to have insurance on the buildings and common property. This insurance provides replacement cover for the building, common contents and legal liability on the common property.

However, the Body Corporate Insurance does not cover the liability of a landlord within the unit.

As a landlord, your liability is exposed from the moment your property is open for inspection by potential tenants.  As our society becomes increasingly more litigious, property owners face the risk of legal action being initiated by tenants or their families and friends who have injured themselves on their property.

It is vital for your protection that your property is maintained in a safe condition at all times.  Insuring your risk as a landlord is also a simple cost effective way to ensure you are covered in the unfortunate event that your tenant, a member of their family or even an invited guest is injured whilst in your unit.

It’s not just your liability that’s at risk when you own an investment property.  Your rent could also be at risk – could you still meet your mortgage repayments if your tenant absconded owing rent?  Would a $3000 repair bill for malicious damage caused by your tenant make life difficult for you?  Whilst we will always act in your best interests while managing your investment, we can’t predict what will happen in your tenant’s life that may cause a previously excellent tenant to cause you to suffer a loss.  These risks and more can be protected with an insurance policy specifically designed to cover the risks you face in owning an investment property.  In many cases the premium is less than the cost of one week’s rent and of course, under current tax laws, the premium is tax deductible.

Terri Scheer Insurance specialise in insurance for landlords of professionally managed residential rental properties. As a distributor of Terri Scheer Landlord Insurance products, your property manager is able to arrange cover for your property immediately.  Alternately, call Terri Scheer on 1800 351 788 or visit www.terrischeer.com.au.

Carolyn Majda|General Manager|Terri Scheer Insurance Pty Ltd

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