Insurance

Asset Management/Insurance

The most common question we hear from our owners regarding insuring an investment property is “ Why do we need insurances?” It’s like the saying “It will never happen to us”… and then it does.

If you were to have a claimable event, you will thank the heavens that you are insured as the alternative could potentially be financial ruin.It is vital that your property be insured for its full replacement cost. Most owners are unaware that if their property is partially or wholly destroyed, there are many other costs to be considered than simple rebuilding costs.

When assessing a sum insured for a building reinstatement, an insurance expert should bring to your attention costs such as: cost of new materials, cost of required labour, demolition and debris removal.The 3 phases of building reinstatement are:

(i) Having architects and engineers design the replacement building
(ii) Submitting and approval of planning permits and separate building permits and
(iii) The actual construction period.

In some cases Council may not allow a like for like building to be reinstated, by Council applying new design considerations that might significantly reduce the size of the building.

The second most common question we hear from our owners regarding insuring an investment property is “ Do we need Public Liability insurance if my tenant has their own Public Liability insurance ?”

Your insurance advisor would answer emphatically yes!

Your tenant’s Public Liability insurance provides cover protection for your tenant if they have negligently caused injury to other persons or damage to other property arising from their business activities /or occupancy of your premises.

Your Public Liability as an owner provides protection for you if you have negligently caused injury to other persons or damage to other property arising from your responsibilities as the owner of your premises.

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