Contents Insurance – Do I Need It?<< Back to Blog
YES, you should definitely have contents insurance! It may not be required by law but did you know that if something happens to the inside of your property that more than likely if you needed to make an insurance claim it would be a Contents Insurance claim. Recently we have seen an increase in contents claims from weather events through to faulty appliances. These events can quickly add up and cost you some serious dollars to pay for repairs to be completed to your investment.
This year alone we have already had serious weather events that have turned into many ten’s of thousands of dollars in repair bills for some of our property owners and only a few of our clients had contents/landlord insurance so they luckily only had a small out of pocket expense for their insurance excess. Regrettably for the our other clients who didn’t have insurance it has been a very expensive experience and learning curve!
More recently a washing machine faulted and flooded the entire top floor apartment that we manage which then flooded the apartment below. Both occupants had to vacate the properties for many days until the properties were dry and safe. This situation can happen so easily to anyone, how many times have you put your washing machine on when going out or before you go to bed? Thankfully our client had landlord insurance which includes contents insurance so had cover for the damages and loss of rent for their property (which is having to be paid to the tenants) Regrettably the apartment below didn’t have contents insurance and this owner and their property who were just very unlucky now have very large repair bills, they will be out of pocket thousands and thousands of dollars. These events add up very quickly and this particular claim will be well over $10,000. Who can afford that sort of expense?
So YES, you should definitely have contents insurance! We highly recommend a policy that offers both contents and landlord insurance therefore giving you protection for your contents and your tenancy. Included with this month’s end of month statement is information from our preferred insurer for all of our permanent and holiday rental properties. For such a small annual premium , less than 80c per day it offers you a lot of protection!
Please do not hesitate to contact your Property Manager or Terri Scheer Insurance 1800 804 016 for more information