If you own an investment property such as a house or an apartment, you need to protect it from unforeseen circumstances such as floods and accidents. This is where insurance for investment properties comes in. Just like other types of insurance, it comes in different varieties to serve the needs of individuals. We will share with you a few examples in the following paragraphs, starting with...
As the name suggests, this type of insurance covers the building itself and its contents. You may have a combined policy for the two, or you could get each one separately. There are certain differences in policies offered by various insurers, so it pays to check the details to ensure that you are getting one that is right for your needs. Some may look like a great deal on the surface, but it may be riddled with hidden fees and charges that could add to your expenses later on.
If you are putting out your property for rent, you might need to protect it with this type of insurance. Unlike the previous type, this covers specifically the needs of landlords. What it means is that your property will be protected from risks associated with rental properties such as destruction caused by tenants, and accidents wherein you might be legally liable as the landlord. It might cost more than regular insurance policies, but it could help you save a lot of money in the long term.
Strata insurance is usually handled by the body corporate manager and is deducted from owners' levies collected quarterly. This type of insurance protects all property owners from liabilities in accidents that might occur in the common areas of the building. Knowing this, you should still apply for a separate type of insurance if you are a landlord, such as the one we mentioned above. The reason for this is that strata insurance only protects you if an accident happens in a common area. However, if it happens within the property that you own, you will be held liable for it as the landlord. A landlord insurance would thus be essential in this type of situation.
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