Sunday, 05 February 2012 12:36 am

Insurance

Owners of rental properties currently face a challenging insurance market where high premiums, elevated deductibles and lower coverage levels are the norm.  And that's where coverage is available at all!

A recent survey of tourism businesses found:

• 85% say insurance costs and the lack of insurance availability are hurting their businesses more than global instability.
• 44% blame the cost and unavailability of insurance for forcing them to put expansion plans on hold.
• 12% could not access any type of insurance at all.

To find insurance start with the company/agent insuring your residence.  Shop around using both properties as a package.  Check with other rental property owners in the same area.  Be prepared to accept lower levels of coverage on the rental property than your residence.

If available you might want to consider extra insurance to cover loss of rental income in the event of damage to your property.

Take the time to compile a really thorough inventory - room by room and cupboard by cupboard.  Take photographs of each room, wall, cupboard etc so if there's a fire, theft or some other problem you have an indisputable record of all your possessions for insurance purposes.  Your property manager should check after each visit that your important possessions (TV, microwave, pictures, etc.) are still in place.

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