WHAT INSURANCE SHOULD I HAVE FOR MY INVESTMENT PROPERTY?
There are different types of insurance options depending on whether or not your property is on an individual title or it is a part of a strata title. Every investor should ensure that every property has public liability coverage regardless of their other policy choices.
Although every body corporate must ensure their building has public liability cover, usually the strata building policy does not include the individual lots. This means that owners of strata properties should take out what’s often called a ‘landlord contents policy’. Typically, this will include public liability for the unit/townhouse & a sum for the content items such as paint, carpet & window furnishings (which are also excluded from the strata cover).
We recommend you to consider the following points:
Individual Title properties: Building insurance – which should include public liability (around $20 million) & contents (around $10k to cover things like paint, carpet, curtains/blinds & flooring). This policy needs to be stipulated as a ‘Landlord policy’. This is important for situations such as a burst water pipe in the ceiling that causes the ceiling to come down; loss of rent can be sought to cover the period of repairs if the tenant has had to vacate due to the event.
Rental default & Accidental Tenant Damage: Most building policies cover loss of rent for an insured event & maliscous damage caused by a tenant. Unfortunately this is not the same as when the tenant vacates leaving rental arrears. The majority of tenant damage claims are deemed to be ‘accidental damage’ by the insurer. The category for accidental damage covers a wide range of events, such as: damaged carpets, damaged walls/paint, damaged tiles etc.
One of the comprehensive rental insurance products available is EBM Rent Cover. They have an annual $371 premium & cover up to 6 weeks rent default (with zero excess) as well as both malicious & accidental tenant damage cover.
There can be an overlap for coverage in certain circumstances, such as loss of rent from an insured event. The double up however may be necessary to provide cover for the important gaps in coverage for a standard building policy.
Strata Title properties: Landlord Contents insurance – which should include public liability (around $20 million) & contents (around $10k to cover things like paint, carpet, curtains/blinds & flooring). This policy should also be stipulated as a ‘Landlord policy’.
Rental default & Accidental Tenant Damage: Most building policies cover loss of rent for an insured event & maliscous damage caused by a tenant. Unfortunately this is not the same as when the tenant vacates leaving rental arrears. The majority of tenant damage claims are deemed to be ‘accidental damage’ by the insurer. The category for accidental damage covers a wide range of events, such as: damaged carpets, damaged walls/paint, damaged tiles etc.
EBM Rent Cover automatically includes both public liability, landlord contents, rent default & accidental tenant damage. The annual premium of $371 is the same for both individual title properties & strata title properties. Therefore, like above, the policy will include cover for up to 6 weeks rent default (with zero excess) as well as both malicious & accidental tenant damage cover.
CAN I ASK THE TENANT TO PAY FOR WATER?
Yes, providing the property has a separate water meter that is read by the Queanbeyan Council.
The property must also have the prescribed water efficiency measures:
Water Efficiency Requirements
There must be no leaking taps or leaking/running toilets on the property at the start of the tenancy.
The maximum flow rate of 9 litres per minute must be limited for all:
Dual flush toilets will be required From 23 March 2025: all toilets on the property must then be dual flush & have a minimum 3-star WELS rating
