INSURANCE (RESIDENTIAL INVESTMENT PROPERTY INSURANCE)
Investment Property Insurance (for Landlords) is a broad policy
designed specifically for residential investment properties. It
covers your residential investment property against all the usual
major risks and usually, some important extra ones. A typical
Residential Investment Property Insurance (for Landlords) covers:
policy gives broad protection including cover against accidental
mishaps resulting in damage to the building (including fittings and
fixtures) or contents. Any exclusions should be clearly listed in the
policy so you know exactly where you stand.
more comprehensive cover will cover malicious damage as follows
damage to the structure of the building by tenants, their family and/or
- theft by
tenants, their family and/or invitees.
more comprehensive policy will cover general household contents
including curtains, blinds, fittings and even furniture left for the
tenant's use. These items are covered against loss resulting from:
- accidental loss
damage by all persons, including tenants.
- theft, riot and
explosions, lightning and earthquakes.
- breakages of
- storm and
- water damage
- impact damage,
leakage of oil
limit $2 000.
typical comprehensive policy will repair or replace your damaged
items under the Building or Contents Section of the Policy to a
maximum combined amount of $45 000.
VALUE FOR BUILDINGS AND CONTENTS
standard policy insures your buildings for their replacement
If the sum insured is high enough, the cost of repairing or
rebuilding your property to new condition will be covered. It should
includes the cost of removing the debris.
contents up to 15 years old are covered for their replacement value
and in the event of a claim, will be replaced or repaired on a `new
for old' basis. The only exceptions are articles consisting solely of
fabric, carpets more than 10 years old and electric motors more than
5 years old.
INDEXATION FOR SUMS INSURED
offset the effects of inflation, the sums insured for buildings and
contents are automatically indexed in line with quarterly increases
in the CPI.
OF RENT (OPTIONAL)
the event that your property is so badly damaged that it is
untenantable, or where damage to property in the vicinity of your own
prevents or hinders access, the policy can cover the rent for up to
twelve months until the necessary repairs or rebuilding have been
completed. The level of rent paid by your insurance will be limited
to the sum insured.
more comprehensive policy will cover full loss of rent caused by:
- premises left
untenantable due to:
damage to the building.
- contents -
up to 52 weeks rent
tenant - up to 6 weeks rent.
payments resulting in eviction of your tenant by Court Order - up to 15
- prevention of
access - up to 52 weeks rent.
- failure to give
Vacant Possession - up to 28 weeks rent.
- death of Tenant
(under a sole tenancy) - up to 15 weeks rent
- tenant Hardship
(When Court awards a tenant a release from lease obligation due to
hardship) up to 4 weeks.
- legal Expenses
- up to $5 000
- legal Costs -
up to $500.
rent is subject to a maximum of $1 000 unless previously agreed.
OF BUILDING OR LAND VALUE
the property is totally destroyed, Government regulations may only
allow a smaller structure to be built on a reduced area. In this
event, a typical policy will cover the difference between the
actual cost of rebuilding and the estimated cost for building a
structure of the original size and area. Also, if enforcement of
legislation results in any loss of land value, this will be covered
by your policy.
an insured loss, you may find that you are required to comply with
Government regulations, local by laws or building regulations which
have been introduced since the property was built. These changes can
often involve unexpected expense. A typical policy's replacement
value benefit covers these additional costs, up to the limit of the
LIABILITY AND WORKER'S COMPENSATION
typical Residential Investment Property Insurance (for landlords)
covers your legal liability for injuries to people or damage to
property arising from the management or ownership of the property.
You are also protected from liability for injuries to people employed
in connection with the ownership, operation and management of the
property. This clause is only available in those states or
territories where it is permitted by law.
typical policy will cover your legal liability as a landlord for an
occurrence which causes:
- damage to other
- death or bodily
injury to other people.
of indemnity $20 000 000.
a typical comprehensive policy the following excesses apply:
- accidental loss
or damage: $350
- earthquake: $200
- other claims: