In 2005 the Australian Securities and Investments Commission (ASIC) estimated that an astonishing 70 per cent of Australian homes were under-insured.
Under insurance results from valuing an asset, such as your property, too low to replace in the event it's damaged.
Insurance firms - particularly those specialising in home, contents and landlord insurance - can offer some guidance when it comes to valuing your property, but ultimately the responsibility lies with you the consumer. Only you can nominate how much insurance to take out on your assets.
The Insurance Council of Australia has compiled the following guidelines to help Australians avoid losing out as a result of under insurance:
The information contained in TenancyCheck.com.au website is general information only and does not constitute legal, financial or compliance advice. As the laws relating to tenancy agreements may have changed we recommend you check with the relevant State or Territory government department. We also recommend that you obtain your own independent legal advice about matters relating to landlord obligations, tenant rights and any legal disputes you may have with a tenant(s).
Regardless of whether you're self-managing one rental property or ten, landlord insurance offers you added protection should the unforeseen occur.
For many Australians, property will be the biggest financial investment they make throughout their lives. Therefore it makes perfect sense that Australians who've bought an investment property are thorough when it comes to researching and ultimately purchasing comprehensive landlord protection insurance.
Under insurance across the Australian property industry is rife. In fact, in 2005 the Australian Securities and Investments Commission (ASIC) estimated that an astonishing 70 per cent of homes did not have sufficient insurance.
It's easy when you're living in a rented property to fall into the trap of thinking your landlord with assume liability for everything within its four walls - not so in the case of tenant belongings.
For inexperienced renters it's easy to fall into the trap of assuming landlord insurance will cover tenant's personal belongings in the event of fire, damage or theft. In reality, landlord insurance and tenant contents insurance are two very different services.