Review your insurance to protect your investment
With any property investment comes a level of risk, which is why it is important to ensure that you have a good insurance policy to cover your biggest assets should anything go wrong.
Life doesn’t always go according to plan and a good policy will cover anything from rent arrears to property and malicious damage, pet incidents and overall building cover.
Once you’ve taken out the policy, you may think that it is a set and forget scenario and you won’t need to worry about it again for the time that you own the property, however there are some considerations like the sum insured, the type of coverage and the amount of coverage that is held over the property.
Work out the sum insured
Your insurer usually won’t calculate or adjust your policy based on the value of the property and the sum insured. This is where it is important to keep your finger on the pulse of the value of your property and adjust your insurance accordingly to reflect increases in value.
If you were to consider rebuilding costs of the home, would your current policy covered that, or do you need to increase the coverage so that you are not out of pocket should you need to rebuild?
Review the type of coverage
Does your current policy cover you for all scenarios and uses of the property? Is it in an area that may be subject to flooding or fires and are there measures in the policy to cover these events?
If you have a Landlord Insurance policy, will it cover for any kind of damage, malicious events, pets, and defaulting tenants, should any of these occur. If not, then it may be worthwhile talking with your insurer on upgrading your policy or making a switch to a more appropriate cover.
Price check the premiums
The costs of living are increasing, and weather events are causing havoc on insurance claims. It’s a good time to review your current policy and the costs and do a price comparison to check that you have the right coverage, and it is at a reasonable price either monthly or annually.
Reviewing your insurance annually is a great way to stay on top of those policies and understand how much your property is covered for in the event that something should happen, it can also give you piece of mind that you are covered and not paying too much in premiums each year.
Remember, this article does not constitute insurance or legal advice. Please consult your professional insurance advisors before making any decisions for yourself.
