Think about it this way.
If your investment property burns down and you don't get any rent you will still need to pay the mortgage.
When it burns down you may not have the funds to rebuild so you need to insure for at least replacement cost.
As my investments are my business I also insure for loss of rent and rates and taxes (for commercial / industrial properties)
Does anybody know where we can get mortgage protection insurance which covers for redundancy. Our mortgage lender can offer this but it has to be taken out within 1 month of settlement. We have passed this unfortunately.
I have been made redundant in the past and do not want to end up with no income and a mortgage to pay off.