If you decide to purchase an investment property, you’ll need to consider ‘landlord insurance’. Typically, a landlord insurance policy covers accidental loss or damage to buildings and contents. Alternatively, if tenants default on their rental payments, a landlord policy can cover this default. Some landlord insurance policies cover acts of nature such as floods and bushfires.
The good news is that the ATO helps you ease some of the financial pain of paying landlord insurance by allowing you to deduct this cost against any income you earn from the investment property or other means such as a salary.
To find out more about landlord insurance or to secure a suitable policy, contact Raine & Horne’s financial services division, Our Broker on 1800 913 677.
If you invest in an apartment or townhouse, you will need to contribute to residential strata insurance. Also known as body corporate cover, this generally covers common property such as lifts, pools, car parks, gardens, wiring, balconies, walls, windows, ceilings and floors. It also provides liability coverage if a person is injured on common property. Your strata manager can provide more advice about residential strata insurance.
Finally, if tenants’ rental repayments don’t cover your loan repayments entirely, some income protection insurance might be worth considering. This cover can provide a valuable source of income if you’re unable to work for a period due to illness or injury. It will also help you top up the mortgage repayments on your investment loan.
To find out more about income insurance, contact Our Broker today on 1800 913 677.