It is important to understand that different Landlord Protection Insurance polices can vary considerably in their extent of cover, as well their cost and deductibles (excesses). Some may cover malicious damage and not accidental damage, some may cover different scenarios for rent loss and some may apply excesses to loss of rent claims, where others do not.
Building Insurance: Covers the owner for the replacement of the building. It is important that owners are adequately insured in accordance with building replacement costs (CPI increases).
Contents Insurance: Covers the owner for their contents (fixtures and fittings) such as curtains, carpets, light fittings, etc. It may also cover loose items of furniture that have been provided for the tenant’s use. It is important to remember that the owners contents insurance does not cover the tenants contents.
Public Liability Insurance: Public Liability is the most important insurance cover for the owner to have, as it covers and protects them in the event of an injury or slip and fall at the property. In most states, Public Liability Insurance is a requirement written into the Management Agreement. As owner should have a minimum of ten million dollars for this insurance.
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