Reminder: The Importance of Property Insurance

With the current situation around the country and the state of the economy, it’s important to remember that costs of living around the country are increasing and as a homeowner it seems financially irresponsible to not purchase property insurance.

Your home is the biggest and perhaps the most costly investment you’ll ever make in your lifetime therefore it only makes practical sense to protect your investment with insurance so, you may want to consider the following…

Protection against property damage

Property insurance offers coverage against a lot of natural disasters including, but not limited to, monsoons and floods, fires, earthquakes, theft, and other weather-related damages.

Regardless of your home’s size, location, and other security features that you may have added, no property is invulnerable to fires, floods, or burglaries.

In some cases the land your property is built in can also erode and send your home crashing down.

Protection for landlords

If you are a landlord, you have some additional risks to your property that you should cover to protect your investment.

Landlord building and contents insurance usually covers your building against risks from catastrophes, such as fire, storms and other natural disasters. It will usually include cover for the fixtures such as light fittings, carpets, ovens, stovetops and window coverings.

You can also protect yourself from financial loss caused by damage to your rental property by your tenants or their guests, and loss of income due to unpaid rent. A landlord’s policy will include accidental damage caused by tenants, theft of your property by your tenants, malicious damage caused by tenants, and loss of rent due to tenants leaving without paying.

If missed rental payments will cause you financial stress, look for a condition in your insurance policy that will cover you for missed rental payments.

Landlord insurance may protect you from loss of rent due to tenant hardship, which occurs when a court awards your tenant a release from their obligation to pay rent for a certain period of time due to hardship (for example, if they are unable to work due to injury or illness).

Another option under landlord insurance policies includes covering your legal expenses if you have to take action against a bad tenant and specialist landlord insurance providers will sometimes even include the cost of replacing locks on the property if your tenant has vacated the premises and has not returned the keys.

Protection for renters and tenants

When you are renting, the owner of the property you are living in is responsible for damage or loss to the building and fittings, but you are responsible for your own possessions – such as your clothes, furniture, electrical goods, books and other valuable belongings.

When a disaster occurs, tenants are often the ones to lose everything and miss out on compensation.

Renter’s insurance is a form of contents cover designed for people living in rented properties and protects against financial loss from specific risks such as fire or burglary or against accidental loss or damage. It can also cover you for accidental damage to fixtures and fittings of the property that you are renting, or provide financial cover for legal liability and may also cover your possessions when you move between properties.

This type of policy varies between insurers so it is worthwhile comparing policies to find the features that best suit your needs.

Protection against liability

A less known benefit of property insurance policies is its liability coverage clause.

Many other forms of insurance policies including auto insurance include this provision.

Being a careful homeowner can help prevent a lot of accidents and injuries but an incident could include your neighbours or your neighbours home.

Liability coverage from your property insurance can help protect against these potentially costly incidents.

Protection for your art & jewellery

For homeowners who have expensive jewellery, art pieces or other valuable possessions in their home, ask your insurance provider about adding personal items or valuables insurance to your contents cover.

This add-on feature will pay out for any damages to your personal items but, keep in mind that these add-ons only usually have a fixed amount that will be paid.

A final thought…

These are just some of the many things that property insurance can protect you from but not all insurance policies are the same so, you will need to sit down and discuss with a trusted insurance provider about specific coverage features that will work best for your property and personal circumstances.

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