Property Investor Tips
Finding the right insurance policy for your property
Posted on Monday, May 11 2009 at 2:19 PM
Are you a homeowner or investor insuring your property? Insurance brokers can help you choose your cover.
Buying a new property as a primary residence or for investment can be a momentous step to building or adding to an investment portfolio. It also introduces the investor to options for insurance as investors take the step of seeking cover for buildings and contents, loss of rent and legal liability.
Insurance brokers can assist with the insurance process. Broking for property insurance involves the broker obtaining quotes to provide the most suitable cover at the most competitive price.
A thorough understanding of the types of insurance protection available is important to both homeowners and investors. Translating and explaining policy information is a broker's job.
For example: the broad cover afforded by the 'Accidental Damage Home and Contents Policy' contract may automatically include cover for contents Australia and New Zealand wide, for the whole policy period and in other places in the world for up to 90 days. This type of policy includes contents cover for accidental physical loss and/or damage. Cover may be provided to some extent for unspecified jewellery items and 25 per cent of the total contents sum insured. A more restricted 'Defined Events Home and Contents Policy' contract won't include contents cover for physical loss or damage outside the home and won't provide for a loss of valuable items outside the home unless they're specified. The types of loss for which you are covered are defined clearly and only those losses are covered.
Reading the policy and understanding inclusions and exclusions helps to build confidence as you, the homeowner or the investor, become clear about what you would and wouldn’t be covered for in the event of disaster.
It's important to know and understand policy terms and conditions as these are set out in the policy.
Insurance brokers can help explain insurance differences and help provide the understanding you require to protect your assets.
The information in this article is subject to further information and to the terms set out in an insurance policy when you are taking out home and contents insurance.
Source: Austbrokers RWA Pty Ltd
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