Confused about insurance

I recently purchased a property at auction, which settles at the end of September. It will be a PPOR but tenants have a lease there until March 2015 (I'm negotiating to see if I can have them vacate by October). I'm confused about the types of insurances I should be taking out. I currently only have health insurance so I feel a bit overexposed.

I have a couple of questions about property related insurance:
  • The property is a unit (1 of 5, single level). Do I need building insurance or is that covered by the body corporate (or do I need to ask the body corporate myself)?
  • Do I need contents insurance?
  • Besides covering rent losses or tenant damage, are there any other arguments for landlord insurance? (as mentioned I'll be moving in between October this year or March next year depending on outcome of tenant negotiation, so I'm debating the necessity for this).
  • What insurance specifically is my lending institution likely to request/require that I have in place?

And of the below (non property related) insurances, which are important in your opinion? (I'm single, no dependents):
  • Income protection
  • TPD
  • Other?

I'm trying to determine a) what insurance policies I need to take out (and when), and b) what is the most economical way of setting it up (e.g. I don't want 8 separate policies)
 
You should get a copy of the body corp insurance via your solicitor to find out what it covers, which will be mainly building cover. You will need to take out contents as building normally doesnt include carpets, internal painting, light fittings, internal kitchen and bathroom fittings etc. As for landlord insurance for peace off mind it is not very expensive. Ring around a few insurance companies and seek their advice eg NRMA, Terri Scheer etc.
 
If you have contracted to buy you should take cover now for the building unless the strata policy covers it. (Contract? / Strata enquiries by solicitor ?) If in doubt insure it. Don't assume the present owner is insured. They might allow it to lapse or cancel it. Your lender WILL require a building policy that names their interest.

If there is strata policy you want a owners contents policy. When it settles you want a LL policy too (some LL policies cover both) as there can be bizarre tenancy losses (eg they may burn your house down deliberately !!...You lose a years income for example, )...

Your contents will be uninsured eg air conditioner, carpets, interior fittings (kitchen etc) - You may also be liable for damage to OTHER units if a fire commences in your unit. Or water damage etc. Public liability ?? What happens if your window falls out and kills a visitor ?

If you cant afford insurance then don't buy an IP. Your solicitor or conveyancer should be advising on the above.
 
I recently purchased a property at auction, which settles at the end of September. It will be a PPOR but tenants have a lease there until March 2015 (I'm negotiating to see if I can have them vacate by October). I'm confused about the types of insurances I should be taking out. I currently only have health insurance so I feel a bit overexposed.

I have a couple of questions about property related insurance:
The property is a unit (1 of 5, single level). Do I need building insurance or is that covered by the body corporate (or do I need to ask the body corporate myself)?
As a general rule the Body Corporate will have a Strata Building policy in place which covers the building and common areas. In saying this, there has been known to be exceptions to this so definitely seek legal advice to check it is covered.
Do I need contents insurance?
Yes. The Strata Building policy will not cover your carpets, curtains, blinds, light fittings etc. Items on the original building unit plan such as your kitchen may in fact be covered by the Strata Building policy, but if it has been replaced at any stage it won't be, and there are plenty of "contents" items that won't be anyway. Most policies will cover up to a certain amount, RentCoverUltra for example has up to $50,000 for contents and up to $30 million for liability. That link will give you an idea about the types of risks that are covered.
Besides covering rent losses or tenant damage, are there any other arguments for landlord insurance? (as mentioned I'll be moving in between October this year or March next year depending on outcome of tenant negotiation, so I'm debating the necessity for this).
A "landlord policy" which includes cover for your contents against defined risks (such as fire etc.) and liability (tenant or visitor being injured or suffering another loss) will include tenant-related losses such as loss of rent and damage or theft by tenants, as well as a whole host of other potential risks, is likely to be cheaper than insuring with just a straight "contents" policy anyway. There are plenty of risks that should not be underestimated.
 
I was hoping Brett could reply...Brokers are an invaluable key to finding a policy. I definitely would shop around for a good policy. A broker once told me the difference between a good policy and a bad one is how the claim is handled and I agree. Two policies are rarely alike. Saw Bretts other posts and the info on his Landlord policy options may be worth further explanation in this thread.

I have two client so far this tax year who have faced large loss / damage due to tenants (one deliberately lit 100% loss and the other a new kitchen (the chips caught fire). Both had LL policies which paid significant rent while out of action. There are some very good and some very bad LL policies.......Brett perhaps you explain the pitfalls and issues.
 
Thanks for the feedback, I think I understand what I need now. Brett does the contents portion of the EBM policy still apply if I eventually move in? (i.e. I accidentally burn down my kitchen).
 
Thanks for the feedback, I think I understand what I need now. Brett does the contents portion of the EBM policy still apply if I eventually move in? (i.e. I accidentally burn down my kitchen).

As the product you would most likely (and be best to) use would be RentCoverUltra, you would need to cancel this when it is no longer tenanted and take out a standard contents policy to include all your personal contents, as it is strictly a landlord policy.
 
hey guys

I have just brought a house and will have it tennanted for 20 weeks. Can you please let me know what insurance I should get? ie i want to be covered in case he burns it down. ta
 
hey guys

I have just brought a house and will have it tennanted for 20 weeks. Can you please let me know what insurance I should get? ie i want to be covered in case he burns it down. ta

I'm basically in your precise situation Connie, tenants are there for a few weeks until I move in. I took out EBM RentCoverUltra (I think) which I will cancel as soon as I move in (purely landlord insurance)
 
As the product you would most likely (and be best to) use would be RentCoverUltra, you would need to cancel this when it is no longer tenanted and take out a standard contents policy to include all your personal contents, as it is strictly a landlord policy.

Can Vouch for EBM, have claimed with them( well property agent did :)) and there were no issues.
Brett is also a good chap!
 
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